Feb 22: In a historic move aimed at boosting India’s space sector, the Indian Union Cabinet has approved sweeping amendments to the Foreign Direct Investment (FDI) policy. Under the revised policy, the doors swing wide open for foreign investors, unleashing a tidal wave of opportunities in satellite manufacturing, space operations, and beyond.
Under the new policy guidelines, for satellite manufacturing and operations, satellite data products, ground segments, and user segments, up to 74% FDI under the automatic route will be permitted. Further investment beyond this threshold will necessitate government approval. Likewise, for launch vehicles, spaceports, and associated systems or subsystems, up to 49% of FDI will be allowed through the automatic route.
Here’s What You Need to Know about the 100% FDI Policy in Space Sector Unveiled by India now
- 100% FDI in Space Sector : Union Minister Anurag Thakur announced, “Under the amended FDI policy, 100% FDI is allowed in the space sector.” This bold step is set to redefine India’s approach to space exploration and technology.
- Liberalized Entry Routes: The amended policy introduces liberalized entry routes to entice potential investors. Up to 74% FDI under the automatic route is now permitted for satellite manufacturing, operation, data products, and ground/user segments.
- Revolutionizing Satellite Manufacturing: Foreign investment up to 100% via the automatic route is now permissible for manufacturing components, systems, or sub-systems related to satellites, ground segments, and user segments.
- Boosting Private Sector Participation: With up to 49% FDI allowed through the automatic route for launch vehicles, spaceports, and associated systems, the private sector is poised to play a pivotal role in India’s space endeavors.
- Consultation with Stakeholders: The formulation of this policy amendment involved extensive consultation with crucial stakeholders, including the Department of Space, ISRO, and various industrial entities, ensuring a collaborative approach to driving growth and innovation.
- Empowering ‘Make in India’ and ‘Atmanirbhar Bharat’: The initiative is expected to fortify Indian companies in the space sector, fostering innovation and self-reliance. Increased private sector involvement will integrate Indian firms into global value chains, aligning with the government’s flagship initiatives.
- Sector-Specific Investment Limits: The satellites sub-sector has been meticulously segmented, with defined limits for foreign investment in each area. This targeted approach ensures a balanced influx of investment while safeguarding national interests.
A decision taken by the #Cabinet today will go a long way in strengthening the space sector in our country. The amendment to the Foreign Direct Investment (FDI) policy on Space Sector has been approved and in prescribed sub-sectors/ activities, space sector has been liberalized.
These reforms will enhance the ease of doing business in the country, leading to greater #FDI inflows, contributing to the growth of investment, income and employment – Union Minister Anurag Thakur on X
Future-Ready 100% FDI Policy: India’s Space Odyssey
With these sweeping policy reforms, India embarks on a new chapter in its space odyssey. The liberalization of FDI norms promises to propel the country’s space capabilities to new heights, fostering job creation, technology absorption, and global integration. As Indian companies gear up to set new benchmarks in satellite technology, the stage is set for a space sector revolution unlike any other.
