As per the extant Foreign Direct Investment (FDI) policy, in the defense sector, foreign investment up to 49% is permitted under the automatic route. Foreign investment beyond 49% (up to 100%) is permitted through government approval in cases resulting in access to modern technology in the country or for other reasons to be recorded. FDI limit for the defense sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act, 1959.