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The present cap (as on 01.01.2015) on Foreign Direct Investment in the

June 1, 2025 by rawan239

The present cap (as on 01.01.2015) on Foreign Direct Investment in the defence sector is:

26%

49%

74%

100%

This question was previously asked in

UPSC CAPF – 2015

Download PDF Attempt Online

The cap on Foreign Direct Investment (FDI) in the defence sector as of 01.01.2015 was 49%.

Prior to August 2014, the FDI limit in the defence sector was 26% under the government approval route. In August 2014, the Government of India revised the FDI policy for the defence sector, increasing the limit to 49% under the government approval route. FDI beyond 49% was also permitted on a case-by-case basis subject to approval of the Cabinet Committee on Security (CCS), provided it was likely to result in access to modern and ‘state-of-art’ technology. This revised policy was in effect on 01.01.2015.

The FDI policy in the defence sector has undergone further liberalization since 2015. In 2020, the limit under the automatic route was increased to 74%, and up to 100% under the government route where it is likely to result in access to modern technology. Therefore, it is crucial to note the specific date mentioned in the question when considering FDI limits.

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