Defence & Aerospace

India's defence sector has undergone one of the most significant regulatory reforms in its history — FDI now permitted up to 74% under the automatic route and 100% with government approval, and the defence manufacturing ecosystem is actively being built out through the DPIIT's Defence Industrial Corridors. For companies entering this sector, the legal architecture begins with licensing: industrial licence under the Industries (Development and Regulation) Act and, where required, manufacturing licence from the Ministry of Defence.

DRDO technology transfer arrangements create unique IP and commercial considerations. Access to DRDO-developed technology typically comes through a Technology Transfer Agreement that specifies production rights, territorial limitations, royalty obligations, and export restrictions. Negotiating these agreements requires understanding both the commercial objectives of the private sector transferee and the strategic and security framework within which DRDO operates. Corpus Juris Legal advises private sector defence companies on DRDO TTA negotiations and ongoing compliance.

Export control is an area of increasing complexity for Indian defence manufacturers. The Weapons of Mass Destruction Act, SCOMET controls administered by DGFT, and the US Export Administration Regulations (applicable to US-origin technology) all create compliance obligations that are unfamiliar to companies entering defence from commercial sectors. Joint ventures — particularly between Indian and foreign defence companies, which are the dominant investment vehicle in this sector — require careful FDI structuring, SHA negotiation, and intellectual property protection at the JV level.