Brief by Shorts91 Newsdesk / 04:20pm on 16 Jan 2026,Friday Defence
India plans to significantly ease foreign investment rules in defence firms to boost domestic manufacturing following last year's Pakistan conflict. The government will raise the FDI cap under the automatic route from 49% to 74% for companies with existing licenses, sources reveal. Currently, 74% foreign ownership is only permitted for firms seeking new licenses. Authorities are also considering dropping the vague "modern technology access" condition for investments beyond 74% and eliminating maintenance facility requirements for export-oriented manufacturers. Despite operations by Airbus, Lockheed Martin, and Rafael, foreign defence investments totaled only $26.5 million in 25 years through September 2025. The defence ministry seeks 20% budget increase for fiscal 2026/27. (PC: Reuters)
