The Ministry of finance on 8th December, 2020 has issued the Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2020. The amendment provides that a Multilateral Bank or Fund, of which India is a member, shall not be treated as an entity of a particular country nor shall any country be treated as the beneficial owner of the investments of such Bank or Fund in India. Foreign investments is allowed in the defense sector through Automatic up to 74% and Government route beyond 74%.
