Adv. Harshita Yadav, LLM (Corporate and Securities Laws), TNNLU, Trichy
Introduction
A foreign direct investment (FDI) is the acquisition of a stake in a firm by a corporation or investor based outside of the country's borders. FDI has played a crucial role in India's rapid growth. This article focuses on foreign direct investment in India's defence industry. For India's economic advancement, Foreign Direct Investment (FDI) has been a critical non-debt financial resource. Foreign firms invest in India to take advantage of cheaper labour costs and one-of-a- kind investment incentives such as tax exemptions. It also entails obtaining technological expertise and creating jobs in a country that welcomes foreign investment. The Indian government's appealing legislative framework and booming economic climate continue to attract foreign money. The government has taken several moves in recent years, notably relaxing FDI prohibitions in fields including defence, PSU oil refineries, telecoms, power exchanges, and stock markets.1
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