FDI, offset and JV legal for foreign defence manufacturers in India.
Defence manufacturing in India permits foreign investment up to seventy-four percent under the automatic route, and beyond that with government approval where the investment is likely to result in access to modern technology or for other reasons to be recorded, but the FDI is only the entry ticket. The Defence Acquisition Procedure 2020, the industrial licence, the indigenisation and domestic-content categories that determine procurement eligibility, and the offset obligations on large contracts shape whether a foreign manufacturer can actually win and deliver business.
Joint ventures with Indian partners, technology transfer, and the security and export-control conditions are central, and the procurement categories that favour indigenously designed and manufactured equipment reward local value addition. We structure the FDI and the joint venture, manage the industrial licence and the DAP procurement categorisation, structure the technology-transfer and offset arrangements, and build the security and export-control compliance so the foreign manufacturer can compete for and perform defence contracts.
Structuring the up-to-seventy-four-percent automatic FDI, the government-route application where higher, and the joint venture with the Indian partner.
Managing the defence industrial licence and the associated security and reporting conditions.
Positioning the venture within the DAP 2020 procurement categories and the indigenisation and domestic-content requirements.
Structuring the offset obligations and the discharge mechanisms on applicable contracts.
Structuring the technology-transfer arrangement and protecting the foreign partner IP within the security framework.
Managing SCOMET and export-control compliance for controlled defence technology.
Up to seventy-four percent under the automatic route. Investment beyond that is permitted with government approval, typically where it is likely to result in access to modern technology or for other reasons to be recorded. The route determines the approval process.
It is the framework governing defence procurement, with categories that prioritise indigenously designed, developed, and manufactured equipment and set domestic-content requirements. A foreign manufacturer must position its venture within these categories to be eligible for procurement.
Offset obligations apply to applicable contracts above the prescribed threshold, requiring the foreign vendor to discharge a proportion of the value through eligible Indian routes. Structuring the offset discharge is a key part of winning and performing large defence contracts.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing. An initial discussion is confidential and is used only to understand the matter and assess fit.
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