FDI Liberalization: Opening Up the Defence Sector to Foreign Investment and Partnerships
2025 was declared by the Ministry of Defence to be the ‘Year of Reforms’ focused towards building a modern, integrated and future-ready defence ecosystem. India’s defence market is rapidly growing and is driven with high government investment, increased exports and technological innovations which positions India as the perfect manufacturing and technology transfer partners for global aerospace and defence companies. The liberalization reforms over the last decade have made local production and technology transfer commercially viable which were otherwise restricted. As a result, international defence deals are being structured for joint manufacturing, licensed productions and localized supply chains for precision weapons, aircraft, navigation systems and much more.
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