DPIIT to approach govt for 74% FDI in defence through auto route: Report

As per the current FDI policy, 100 per cent overseas investments are permitted in the defence industry -- 49 per cent under the automatic route, while beyond that the government approval is required

The DPIIT would soon approach the Union Cabinet to seek approval for relaxing norms to allow up to 74 per cent foreign direct investment (FDI) in defence manufacturing under the automatic route, with a view to attract overseas players in the sector, sources said.

They said the Department for Promotion of Industry and Internal Trade (DPIIT) has discussed the matter with the defence ministry.

The decision to permit up to 74 per cent FDI in the defence manufacturing through the automatic route was announced by Finance Minister Nirmala Sitharaman in May while announcing the fourth tranche of the Rs 20