As per the policy applicable in 2017, how much Foreign Direct Investment (FDI) is permitted in the defence sector in India ?
49 per cent through the automatic route
26 per cent through the government route
26 per cent through the automatic route and beyond that up to 49 per cent through the government route
75 per cent through the automatic route
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC NDA-1 – 2018
As per the policy applicable in 2017, the correct option is A, 49 per cent through the automatic route.
– In 2016, the Indian government liberalized the FDI policy in the defence sector, permitting FDI up to 49% under the automatic route.
– Beyond 49%, FDI was permitted through the government route (Foreign Investment Promotion Board/FIPB, which was later abolished and replaced by the DPIIT consultation mechanism) on a case-by-case basis, with the condition that it should result in access to modern technology.