Team Blitz India
THE Centre recently approved an amendment to the Foreign Direct Investment policy, allowing 100% foreign investment in the space sector.
With the liberalised entry routes under the amended policy, the Government aims to attract potential investors to invest in Indian companies in space. The increased private sector participation would help to generate employment, enable modern technology absorption and make the sector self-reliant. It is expected to integrate Indian companies into global value chains. With this, companies will be able to set up their manufacturing facilities within the country duly encouraging ‘Make in India ‘ and ‘Atmanirbhar Bharat’ initiatives of the Government.
As per the existing policy, FDI was 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 liberalised FDI thresholds for various subsectors/activities.
Now, the satellites sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector. Up to 74 per cent under automatic route has been allowed for satellite manufacturing and operation, satellite data products and ground segment and user segment. Beyond 74% these activities are under government route. Up to 49 per cent under automatic route has been allowed for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft. Beyond 49 per cent these activities are under government route.
Up to 100 per cent under automatic route has been allowed for manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment.
Briefing the media, Information and Broadcasting Minister Anurag Singh Thakur had said the liberalised entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space. Thakur added that FDI up to 100% under the automatic route will be allowed for the manufacturing of components and systems or sub-systems for satellites, ground segments, and user segments.
