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AMLEGALS / France–India Desk / France–India Defence and Aerospace Legal
France – India legal desk

France–India Defence and Aerospace Legal

Offset, JV and procurement legal for French defence and aerospace in India.

Strategic context

Why the structure must be correct from the first filing

A French company entering defence and aerospace manufacturing in India operates under a defined regulatory frame: inbound investment under FEMA and the consolidated FDI policy, the activity-specific regime of the Ministry of Defence, the Defence Acquisition Procedure 2020 and the 74% automatic-route FDI cap with offset obligations, and the corporate, tax, employment and data obligations common to any operating company. The sectoral rules decide the entry route, the permitted shareholding and the licences, so they must be mapped before the structure is fixed.

AMLEGALS advises French investors across the defence and aerospace manufacturing life cycle in India — entry structure and FDI route, sectoral licensing and approvals, commercial contracts, IP and data, and dispute resolution. We connect the sectoral regulation to the corporate and tax structure so the French group has one coherent India position rather than disconnected advice.

Workstreams

How AMLEGALS acts

01

Entry structure and FDI route

Determining the entry vehicle, the automatic or government route and the sectoral cap for defence and aerospace manufacturing.

02

Sectoral licensing and approvals

Securing the approvals and registrations required under the Ministry of Defence, the Defence Acquisition Procedure 2020 and the 74% automatic-route FDI cap with offset obligations.

03

Commercial contracts

Drafting the supply, distribution, manufacturing and services agreements for the defence and aerospace manufacturing operation.

04

IP and technology

Protecting and licensing the French group’s technology and brands and securing India-created IP.

05

Data protection and compliance

Building DPDPA and ongoing regulatory compliance for the India operation.

06

Disputes and enforcement

Managing regulatory, commercial and enforcement matters arising in the defence and aerospace manufacturing sector.

Answers

Frequently asked questions

01Can a French company invest in defence and aerospace manufacturing in India?

Yes, subject to the sectoral FDI position. Many activities are on the automatic route up to the applicable cap, while some require government approval or carry conditions. AMLEGALS confirms the route, cap and conditions under the consolidated FDI policy and the Ministry of Defence, the Defence Acquisition Procedure 2020 and the 74% automatic-route FDI cap with offset obligations before the structure is fixed.

02What licences are needed for defence and aerospace manufacturing in India?

The licences and registrations depend on the activity and are governed by the Ministry of Defence, the Defence Acquisition Procedure 2020 and the 74% automatic-route FDI cap with offset obligations. AMLEGALS identifies the full approval set at the outset so the timeline and sequence are built into the entry plan.

03What is the best structure for a French defence and aerospace manufacturing investment?

Most operating investments use a wholly owned subsidiary or, where an Indian partner is required, a joint venture. The choice turns on the sectoral cap, the need for local participation, control and exit. AMLEGALS structures it for both the sectoral rules and tax efficiency under the India–France DTAA.

04How are sector-specific disputes handled?

Through the sector regulator’s mechanisms where applicable and through commercial arbitration or the commercial courts for contractual disputes. AMLEGALS drafts enforceable dispute clauses and represents the French group if a dispute arises.

05Does an initial discussion create a lawyer-client relationship?

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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