As per the extant policy, Foreign Direct Investment is permitted in th

As per the extant policy, Foreign Direct Investment is permitted in the defence sector under the automatic route up to which one of the following limits?

[amp_mcq option1=”26 percent” option2=”74 percent” option3=”51 percent” option4=”49 percent” correct=”option2″]

This question was previously asked in
UPSC CDS-2 – 2018
As per the extant policy around the time this question was framed (likely 2018-2019), Foreign Direct Investment (FDI) was permitted in the defence sector under the automatic route up to 49 percent.
– The limit for FDI under the automatic route in the defence sector was 49%.
– Beyond 49% and up to 100%, FDI was permitted under the government route, provided it was likely to result in access to modern technology or for other reasons to be recorded.
– The FDI policy in defence manufacturing has been progressively liberalized over the years. Initially, it was restricted to 26%. It was later increased to 49% under automatic route. In 2020, the limit under the automatic route was further increased to 74%.
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