India's Foreign Investment Promotion Board (FIPB) is to play a more significant role in determining the outcome of foreign direct investment (FDI) proposals in the defence sector, according to a note issued by the Department of Industrial Policy and Promotion (DIPP) on 23 August. The note states the FIPB will, in collaboration with the Ministry of Defence's (MoD's) Department of Defence Production (DoDP), determine whether a proposal above the currently mandated 26% FDI cap qualifies as investment in a 'state-of-the-art' technology area and as such whether it should be approved.
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