Norms for FDI in defense

Q.  Which of the following statements is/are correct about FDI in defense?

1. FDI up to 51 percent is allowed via automatic route.
2. Mandatory permission from the Cabinet Committee on Security (CCS) is required for above 51%.
- Published on 11 Jan 16

a. Only 1
b. Only 2
c. Both
d. None

ANSWER: None
 
- Foreign direct investment norms in the defense sector were changed by allowing FDI up to 49 percent under automatic route and beyond that through the FIPB’s approval.
- The government has also done away with the earlier requirement of mandatory permission from the Cabinet Committee on Security (CCS) beyond 49 percent.
- As per the earlier FDI policy in the sector, foreign investment up to 49 percent was permitted under government approval route.
Portfolio investment and investment by FVCIs were restricted to 24 percent only.

Related Content

➨ Post your comment / Share knowledge


Enter the code shown above:

(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)
▲