The Aryavarth Express
Agency(New Delhi): The Government of India has taken a progressive step by revising the Foreign Direct Investment (FDI) policy pertaining to the space sector, as outlined in Para 5.2.12 of the Consolidated FDI Policy Circular of 2020. This move is expected to invigorate the sector with enhanced investment and technological advancements.
The updated policy provisions allow for 100% FDI in various segments of the space sector, distinguishing the entry routes based on the extent of foreign investment. For the manufacturing and operation of satellites, as well as for satellite data products and both ground and user segments, FDI up to 74% will follow the automatic route. Investments beyond this threshold require approval through the government route. Similarly, for launch vehicles, associated systems or subsystems, and the creation of spaceports for launching and receiving spacecraft, the policy permits up to 49% FDI through the automatic route, with higher investments necessitating government clearance.
Manufacturing of components and systems/sub-systems for satellites, along with ground and user segments, is open to up to 100% FDI under the automatic route, indicating a significant liberalization aimed at fostering growth and self-reliance in the space industry.
These amendments are subject to sectoral guidelines as issued by the Department of Space, ensuring that investments align with national objectives and security considerations. Definitions within the policy clarify the scope of activities and segments eligible for FDI, covering end-to-end satellite operations, satellite data products, ground and user segments, launch vehicles, spaceports, and the manufacturing of related components and systems.
This policy revision, effective from the date of the FEMA notification, represents a strategic effort by the Indian government to attract global investors and technologists into its burgeoning space sector, promising a new era of innovation, development, and international collaboration.