Indian govt approves 100% FDI for space sector in the new policy
In a move to boost the Indian space sector, the Indian government has eased its FDI policy to attract foreign companies and increase ease of doing business.
In the Union Cabinet meeting headed by Prime Minister Narendra Modi, the central government on Wednesday (February 21) approved up to 100% foreign direct investment (FDI) for some activities in the space sector.
"As per the existing FDI policy, FDI is permitted in 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 Union Cabinet has eased the FDI policy on Space sector by prescribing liberalized FDI thresholds for various sub-sectors/activities," the government said in a statement.
The FDI in the space sector has been classified into three categories. The first category allows up to 74% FDI under automatic route in satellite manufacturing and operation, satellite data products and ground segment and user segment. In this category, beyond 74% FDI would be cleared via the government route.
In the second category, FDI not more than 49% will be allowed through automatic route for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft. In this category, beyond 49% FDI, these activities would come under government route.
In the third category, the cabinet has approved up to 100% in the third category, under automatic route for manufacturing of components and systems or sub-systems for satellites, ground segment and user-segment.
"Department of Space consulted with internal stakeholders like IN-SPACe (Indian National Space Promotion and Authorisation Centre), ISRO (Indian Space Research Organisation) and NSIL (New Space India Limited) as well as several industrial stakeholders. NGEs (Non-Government Entity) have developed capabilities and expertise in the areas of satellites and launch vehicles. With increased investment, they would be able to achieve sophistication of products, global scale of operations and enhanced share of global space economy," the government statement said.
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