Indian defense sector may allow 100% FDI

In order to increase the participation of foreign defense equipment makers, the Indian government may allow 100% FDI in this sector, which will contribute to the production of military transport aircraft, battle tanks, and armoured vehicles. This was the outcome of a meeting held with government officials by Finance Minister Arun Jaitley while reviewing the current Foreign Direct Investment (FDI) policy. 
 
Currently, foreign investment up to 49% is permitted under the automatic route and foreign investment beyond 49% and up to 100% is permitted through government approval. Though this will bring in access to modern technology for the defense forces, major foreign defense OEMs have not yet shown keen interest in real transfer of technology.