During 2015, in, ______ sector, Government of India had allowed about 49% of FDI.

Key Points

• During 2015, the Government of India allowed about 49% of FDI in the defence sector.
• This decision was part of a broader effort to boost the defense manufacturing capabilities in India, encouraging foreign companies to invest and form joint ventures with Indian firms.
• The aim was to modernize the defense sector and reduce dependency on imports by encouraging indigenous production.
• This policy change was expected to bring in advanced technology, foster innovation, and create employment opportunities in the defense manufacturing sector.

Additional Information

• The Foreign Direct Investment (FDI) policy in India is regulated by the Ministry of Commerce and Industry, Government of India.
• The policy framework for FDI is governed by the Foreign Exchange Management Act, 1999 (FEMA).
• The FDI policy aims to attract foreign investment, enhance technology transfer, and improve the overall competitiveness of the Indian economy.
• FDI in certain sectors is subject to sectoral caps and approval requirements, while in other sectors, it is allowed under the automatic route.
• Over the years, the Government of India has liberalized the FDI policy to make India an attractive destination for foreign investors.