India Plans to Raise Defence Sector FDI Cap to 74% to Boost Manufacturing

India plans to ease foreign direct investment (FDI) rules in the defence sector by raising the automatic route cap from 49% to 74%, allowing foreign firms to take majority stakes in existing defence companies. The government is also considering removing conditions requiring foreign investment beyond 74% to result in access to modern technology and dropping mandates for export-oriented firms to establish domestic maintenance facilities. These reforms aim to boost domestic manufacturing and could be implemented within months amid rising defence capital expenditure and geopolitical concerns.