Govt relaxes FDI norms in defence sector
The government on Monday liberalised FDI norms in the defence sector, dropping 'state-of-the-art' clause for investments over 49%. Previously, overseas investment in the sector above 49% (via approval route) was allowed only when it resulted in access to 'modern' and 'state-of-the-art' technology in India. Meanwhile, FDI up to 49% in defence will continue to be allowed under the automatic route.