Thales CEO Patrice Caine has urged the Indian government to simplify foreign ownership regulations in the defense sector, advocating a model similar to France and the UK, where full foreign ownership is permitted under strict intellectual property and export control protections. Currently, India allows 100% foreign investment in defense but requires government approval for ownership beyond 74%, causing delays in several proposals. Thales, which partners with Indian companies like Reliance and Adani, has pushed for allowing 100% foreign-owned defense firms under the automatic route to accelerate indigenous capabilities and support initiatives like Make in India. The company’s collaborations include manufacturing advanced avionics and precision weapons locally, boosting India’s defense innovation and strategic autonomy amid global security challenges. However, the nascent Indian defense industry faces threats from 100% foreign investment, including potential technology dependence, risks to indigenous R&D growth, and challenges for domestic firms competing with foreign giants, raising concerns about safeguarding national security and intellectual property rights. Balancing openness with protective measures remains key to sustaining India’s defense industrial growth. The Indian government currently maintains a cautious stance, permitting full ownership selectively and under stringent oversight, as seen in the Saab approval in 2023. Thales’ call for easier FDI rules aligns with the broader push for expanding private and foreign participation to meet ambitious defense export targets by 2029.