India opens space sector to 100% foreign investment with new FDI policy
The space sector gets a 100 percent Foreign Direct Investment nod after the Union Cabinet, chaired by Prime Minister Narendra Modi approved the amendment to the Foreign Direct Investment (FDI) policy.
Under the amended policy, up to 49 percent FDI is allowed in launch vehicles, 74 percent in satellites, and 100 percent in satellite components.
According to the statement, the liberalized entry routes under the amended policy are aimed at attracting potential investors to invest in Indian companies in space
The increased private sector participation would help to generate employment, enable modern technology absorption, and make the sector self-reliant. It is expected to integrate Indian companies into global value chains, the statement noted.
“With this, companies will be able to set up their manufacturing facilities within the country duly encouraging ‘Make In India (MII)’ and ‘Atmanirbhar Bharat’ initiatives of the government,” it added.
The satellites sub-sector has been divided into three different activities — Launch Vehicles, Satellites, and Satellite Components.
The activities defined under ‘Launch Vehicles’ are associated systems or subsystems; and the creation of spaceports for launching and receiving spacecraft.
Similarly, the activities under ‘Satellites‘ are manufacturing and operation; satellite data products; and ground segment and user segment.
As per the existing policy, FDI is permitted in the establishment and operation of satellites through the government approval route only. In line with the vision and strategy under the Indian Space Policy 2023, the Cabinet has eased the FDI policy on the space sector by prescribing liberalized FDI thresholds for various sub-sectors/ activities, according to an official statement issued after the Cabinet meeting.
[With Inputs from IANS]
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