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India to Liberalise Defence FDI Norms: Automatic Route Cap May Rise to 74 Percent


Exam-Focused Points

  • Current automatic FDI limit for existing defence licence holders is 49% .

  • Up to 74% FDI is allowed automatically for new defence licences .

  • FDI beyond 74% currently requires access to “modern technology.”

  • India aims to achieve $5.5 billion in defence exports by 2029 .

  • Defence FDI inflows remain low at $26.5 million over 25 years .

  • Reforms align with Atmanirbhar Bharat and defence indigenisation goals.

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