Stress on Investment Route in Defence Cooperation Agreements

The Government revised the FDI Policy in defence sector in August 2014 thereby raised the FDI limit from earlier 26% to 49% through Government route and above 49% with the approval of Cabinet Committee on Security (CCS) on case to case basis, wherever it is likely to result in access to modern and 'state-of-the-art' technology in the country. Since the policy has been revised only last year, no assessment of its impact has been made on increasing the share of domestic content in defence procurement.