On 26 August 2014, the Department of Industrial Policy and Promotion increased the cap on FDI in the Defence Industry from 26% to 49%. Such investments will still require prior approval of the government. 
 
Furthermore prior to this decision, investments by Portfolio Investors were not permitted. These have been allowed with the new measure and are capped at 24% of the total equity. Also there was a three year lock in period for transfer of equity between non-resident investors, which has been omitted.