Defense Business and Industry

Thales Executive Advocates 100% FDI in India’s Defense for Growth

Pascale Sourisse, Senior Executive Vice-President at Thales, has proposed that India should allow 100% foreign direct investment (FDI) in the defense sector under the automatic route, emphasizing that this would significantly enhance indigenous manufacturing capabilities. Currently, foreign investments are capped at 74%, which Sourisse argues complicates partnerships and slows technology transfer. She highlighted that Thales has managed successful wholly-owned subsidiaries in other markets, advocating for a similar model in India, particularly under the Atmanirbhar Bharat initiative, which aims to boost self-reliance in defense. This proposal reflects ongoing challenges in attracting global defense players, underscoring the need for regulatory reforms to expedite the localization of advanced military technologies.

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