India’s New FDI Policy To Boost Space Sector Investment


India has recently updated its foreign direct investment (FDI) policy in the space sector, aiming to attract global investors and companies. The new policy, approved by the Indian cabinet, raises the limits on foreign investment, potentially sparking renewed interest in the South Asian space community.

Key Takeaway

India’s updated FDI policy in the space sector, with raised limits on foreign funding, is set to attract global investors and companies, potentially boosting the country’s presence in the global space economy.

Amendment in FDI Norms

The Indian government has defined three different categories under the amended policy:

  • Up to 49% (foreign ownership) for launch vehicles and associated systems and subsystems, creation of spaceports for launching and receiving spacecraft.
  • Up to 74% for satellite manufacturing and operation, satellite data products and ground segment and user segment.
  • Up to 100% for manufacturing components and systems and subsystems for satellites, ground segment and user segment.

Foreign investments beyond the given thresholds will require government approval.

Impact on India’s Space Sector

The move comes after India’s space agency, the Indian Space Research Organisation (ISRO), has been making significant strides to gain global attention, including the successful moon landing of its Chandrayaan-3 spacecraft and partnership with NASA over joining Artemis Accords. However, the previous restrictions in foreign direct investments limited the country’s scope to attract international investors and caused a delay in funding for some of India’s growing space tech startups.

Future Prospects

India aims to send its first astronaut to the moon by 2040. With the updated FDI norms, the country’s space economy, which is projected to reach $44 billion by 2033, is expected to witness significant growth and enhance its presence in the global space economy.

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