Indian Economy News

India amends policy, allowing 100% FDI in the manufacture of satellite components

  • IBEF
  • February 23, 2024

India marked a significant stride in liberalizing its space sector as the Union Cabinet amended the foreign direct investment (FDI) policy. This revision, designed to attract more foreign capital, allows 100% FDI in manufacturing components and systems for satellites, ground segments, and user segments. For satellite manufacturing and operation, satellite data products, and related ground segments and user segments, the FDI limit is 74%, with activities exceeding this threshold requiring government approval. Additionally, a 49% FDI limit under the automatic route has been established for the development of launch vehicles, associated systems, and the establishment of spaceports.

Aligned with the Indian Space Policy 2023, these adjustments are expected to bring clarity and liberalized entry routes for FDI across various sub-sectors in the space domain. The move has garnered positive reactions within the space industry, with experts anticipating increased confidence and participation from global players. AK Bhatt, Director-General of the Indian Space Association (ISpA), emphasized the potential for India to access advanced technologies and essential funds, projecting an enhanced role for the country, which currently contributes just over 2% to the global space economy in the broader global space market.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.