This presentation provides an in-depth overview of the evolution and liberalisation of Foreign Direct Investment (FDI) in India’s defence sector, highlighting key policy milestones, compliance requirements, challenges, and sectoral impacts. India’s progressive FDI policy now allows up to 74% investment through the automatic route and 100% with government approval, enabling access to cutting-edge technology, capital inflows, and innovation. These reforms have led to significant milestones including ₹5,077 crore in FDI inflows, record domestic defence production of ₹1.27 lakh crore, and exports surpassing ₹21,000 crore in FY 2023-24. Beyond numbers, this reflects India’s commitment to building a robust defence ecosystem where private sector participation, indigenous capability, and foreign partnerships strengthen national security and advance the vision of Atmanirbhar Bharat.
Prepared by our intern, Tushar Dhar, to provide valuable insights for strategic understanding and policy engagement.
