TAKE ON BOARD
T
he Indian Government’s policies in the last few
years have gradually moved in the direction of
making the defense manufacturing sector more
attractive for private entities. This sector has
been traditionally dominated by public sector
utilities. In an attempt to simplify the regulations involving
defense sector and to project India as an attractive
destination for defense manufacturing, a series of policy
level changes have been notified:
• FDI policy for the defense sector has been reviewed and
as per the revised policy, composite foreign investment
up to 49% is allowed under the automatic route and
beyond 49% with government approval.
• The Defense Products List for the purpose of issuing
Industrial Licenses (ILs) under the IDR Act has been
revised and most of the components, parts, sub-systems,
testing equipments, and production equipments have
been removed from the List, so as to reduce entry
barriers for the industry, particularly the small &
medium segment.
Vasanth Rajasekaran
Partner
Phoenix Legal
Sukrit Seth
Senior Associate
Phoenix Legal
Saurabh Babulkar
Associate
Phoenix Legal
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| L egal E ra | N ovember 2017
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