GUWAHATI: The Union Cabinet has approved amendments to the Foreign Direct Investment (FDI) policy pertaining to the space sector. The revised policy, which divides the satellites sub-sector into three distinct activities, aims to attract foreign investment and enhance private participation in India's burgeoning space industry.
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The amended FDI policy divides the satellites sub-sector into three distinct activities, each with defined limits for foreign investment. This strategic move is aligned with the Indian Space Policy 2023, which aims to unlock India's potential in the space sector through enhanced private participation and technological advancements.
The Department of Space conducted consultations with internal stakeholders such as IN-SPACe, ISRO, NSIL, and various industrial stakeholders to formulate the amended FDI policy. The reforms aim to capitalize on the capabilities and expertise of Non-Governmental Entities (NGEs) in areas related to satellites and launch vehicles.
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Under the amended policy, liberalised entry routes have been prescribed to attract potential investors to invest in Indian companies engaged in various activities within the space sector. Notably, 100% FDI is allowed in the space sector, with different entry routes for specific activities such as satellites manufacturing and operation, launch vehicles, and associated systems.