First company to get 100% defence FDI

November 7, 2023

Sweden’s Saab has reportedly become the first foreign company that has bagged 100% FDI in India’s defence projects.
It will set up a new facility in the country (likely in Haryana) that will manufacture shoulder-fired rockets.
This will be the first time Saab will manufacture Carl-Gustaf M4 outside Sweden.
The shoulder-fired rockets are used by Indian armed forces extensively, and countries like the US, and European nations also use them to take down fortified enemy positions, armour, and personnel.
Currently, India allows only 74% FDI in the defence sector under the automatic route.
Beyond that, clearance can be obtained on a case-by-case basis.
However, the clearance rules were relaxed in 2015, still, no foreign firm was able to get permission for 100% FDI in defence.
The Government has liberalised and allowed FDI under automatic route up to 74% and up to 100% through Government route wherever it is likely to result in access to modern technology.