The Aryavarth Express
Agency (New Delhi): The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a significant amendment to the Foreign Direct Investment (FDI) policy in the Space sector. This move divides the satellites sub-sector into three distinct activities, each with defined limits for foreign investment, as per an official statement.
This decision aligns with the Indian Space Policy 2023, which serves as a comprehensive framework to implement a vision for unlocking India’s potential in the Space sector. The policy is designed to enhance private participation, augment space capabilities, develop a commercial presence in space, and use space technology as a driver for technological development and benefits in allied areas. It also aims to foster international relations and create an ecosystem for the effective implementation of space applications.
Previously, FDI in the establishment and operation of satellites was permitted only through the government approval route. The Union Cabinet’s amendment eases these restrictions, liberalizing FDI thresholds for various sub-sectors and activities under the Indian Space Policy 2023.
The Department of Space consulted with internal stakeholders, including IN-SPACe, ISRO, NSIL, and several industrial stakeholders, to formulate these reforms. The proposed changes are intended to liberalize the FDI policy in the space sector, clarifying FDI provisions in satellites, launch vehicles, and related systems or subsystems. It also includes provisions for creating spaceports for launching and receiving spacecraft and manufacturing space-related components and systems.
Under the amended policy, 100 percent FDI is allowed in the space sector. The liberalized entry routes are designed to attract potential investors to invest in Indian companies in the space sector. This increased private sector participation is expected to generate employment, enable technology absorption, and contribute to the sector’s self-reliance. The amendment is anticipated to integrate Indian companies into global value chains, encouraging the establishment of manufacturing facilities in India. This step is in line with the Government’s ‘Make In India’ and ‘Atmanirbhar Bharat’ initiatives.