Archive · 16 Jan 2026

DPIIT Considers Easing FDI Norms for Defence

DPIIT Considers Easing FDI Norms for Defence

The Department for Promotion of Industry and Internal Trade (DPIIT) in India is thinking about making it easier for foreign companies to invest in Indian defence companies.

Right now, foreign companies can own up to 49% of a defence company without needing special permission.

The government wants to increase this limit to 74% for companies that already have a licence.

This change is to make the rules the same for both new and old defence companies.

The government had already made this change for new defence companies in 2020.

The goal is to attract more foreign investment in the defence sector.

Sources