India has vast swathes of land, Long stretches of coastline and important offshore installations and airspace to defend. In order to successfully and efficiently do so, India’s armed forces need, in addition to expert training, access to a variety of tools and technologies, simplifying their job and making it significantly safer.

The fact that India has the third largest armed forces in the world, has created great scope for the supply of a variety of arms and ammunition as well as the latest, most efficient and reliable technology. This has the dual benefit of encouraging and increasing investment in the sector as well as helping India overcome any vulnerabilities in it’s defence systems to the greatest possible degree.

India’s defence needs are currently primarily met through imports, with it contributing to about 60% of the total needs. However, the opening up of the defence industry to private sector participation is expected to encourage investment, drive domestic development in the sector and eventually increase exports.

FDI upto 49% has been allowed under the Government route in this sector with provisions for greater FDI in certain cases to be decided by the cabinet committee on a case to case basis. However, FDI in defence is also subject to certain other security conditions. Provisions have also been created to allow for Joint Ventures in this sector and for the streamlining of the grant of licenses.

The Union Budget for the year 2014-15 also contained detailed provisions for the financial support that would be granted to persons/entities entering into this sector, including the allocation of INR 2290 Billion to the defense services, allocation of money for the strengthening of infrastructure at the borders and Tax Incentives and deductions that would be provided to them .

Our legal expertise helps us navigate the complex path treaded by players in this sector with relative ease and a high degree of success, helping us do the same for our clients and safeguard their interests, advocating their agenda to the fullest of our prodigious capability.

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