Foreign defense firms can now set up fully owned subsidiaries in India following the Indian government’s decision to increase Foreign Direct Investment in the defense sector to 100 percent from 49 percent, reports Defense World.
Foreign investment beyond 49 per cent has now been permitted through a government approval route wherever it is likely to result in access to modern technology or for other reasons to be recorded. This FDI limit is also applicable to Manufacturing of Small Arms and Ammunition covered under the Arms Act 1959, an official statement said.
Last updated: December 26th, 2025
