Sources said the FDI proposal, valued at under ₹500 crore, was cleared last month. India currently allows up to 74% FDI in the defence sector under the automatic route. Beyond that, clearances can be obtained on a case-by-case basis. While clearance rules were relaxed in 2015, no foreign company had, until now, been able to get permission for 100% FDI in defence.
By seeking to move in with 100 percent ownership in certain areas, the Swedish defence manufacturer is looking to deepen its roots in the Indian defence industry.