Make‑in‑India gains new European ally as FDI rules loosen for defence sector

India’s strategic shift toward self‑reliance in defence manufacturing is being reinforced by relaxed foreign direct investment rules. Under the latest policy, up to 74 percent of FDI can flow through an automatic route and 100 percent through a government route for high‑technology projects. The new space policy also permits full foreign investment, encouraging partnerships that bring cutting‑edge technology to Indian factories. Defence industrial corridors planned in Tamil Nadu, Uttar Pradesh, Maharashtra and Assam will offer incentives to foreign equipment makers, creating a vibrant ecosystem for joint ventures.