FDI in Defence Sector: Legal issues and challenges
India is surrounded by hostile neighbors. The need of the hour is less reliance on import of defence equipment and focusing on the development of its indigenous defence production. Government recently eased FDI (foreign direct investment) norms in defence sector, amended defence procurement policy and eased out the industrial licensing requirement in defence sector and introduced changes in the legal and regulatory framework with regards to defence sector in order to achieve self-reliance in defence sector. The present study help us to understand the reason behind increase in FDI cap, amendment in DPP (Defence procurement procedure) and necessity for change in policies and introduction of new policies in defence sector with focus on FDI. In this study only current FDI policy in defence sector of other countries is analyzed and different joint ventures in defence sector with foreign firms is also taken into account for constructive suggestions and measures for future.