India Opens Doors to Foreign Investment in Space Sector: New FDI Policy Amendments Unveiled
Image used for representational purposes.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved changes in the Foreign Direct Investment (FDI) policy for the space sector. Now, the satellite sub-sector is divided into three activities, each with defined limits for foreign investment.
Under the Indian Space Policy 2023, a comprehensive framework aims to boost private participation, enhance space capabilities, and drive technology development. The amended FDI policy allows up to 100% FDI in the space sector, with liberalized entry routes for various activities.
Key changes include:
– Automatic route for up to 74% FDI in satellite manufacturing, operation, and related segments.
– Automatic route for up to 49% FDI in launch vehicles and spaceports.
– Automatic route for up to 100% FDI in manufacturing of space-related components and systems.
These reforms aim to attract investors, create jobs, and integrate Indian companies into global value chains, aligning with the ‘Make In India’ and ‘Atmanirbhar Bharat’ initiatives.
