Defence wares will be manufactured in India by the foreign companies

Raising the FDI limit and relaxed the FDI policy for the defence sector boosted the foreign companies to manufacture defence wares in India, in collaboration with Indian firms.
Defence Acquisition Council (DAC) approved projects worth Rs 178,036 crore during FY15.
Parrikar, Defence Minister, said that the projects for defence offset could cross $35 billion by this year
As on July 2015 India has issued a total 287 industrial licenses in defence sector.
Private players like Reliance Defence, Tatas, Mahindras and L&T are heavily investing in defence offset capacity to bag government orders in India and abroad.
In order to encourage Private Sector, Government reserved few Projects for them.
The push for defence manufacturing started last year as part of the Make in India initiative

Source: Defence News