India Plans to Ease FDI Rules to Boost Investment in Domestic Defence Firms

India plans to ease foreign direct investment (FDI) rules in domestic defence firms by raising the automatic route cap from 49% to 74%, allowing foreign companies to take majority stakes without government approval. The government is also considering removing conditions requiring foreign investment beyond 74% to result in access to modern technology and mandating export-oriented firms to maintain domestic support facilities. These reforms aim to boost domestic manufacturing and attract more foreign investment, with implementation expected in the coming months.