## India Opens Doors to Foreign Investment in Space Sector
The Indian government has announced significant amendments to its foreign direct investment (FDI) policy for the space sector, aiming to attract offshore investors and boost domestic capabilities. This move marks a shift from the earlier restrictive approach, where FDI in satellite establishment and operation was only permitted through government approval.
Satellites: Up to 74% FDI for satellite manufacturing and operation, satellite data products, and ground and user segments is allowed under the automatic route. Beyond 74%, government approval is required.
FDI up to 49% for launch vehicles and associated systems or subsystems, and creation of spaceports for launching and receiving spacecraft, is allowed under the automatic route. Government permission is needed for investments exceeding 49%.
100% FDI is permitted for manufacturing components and systems/subsystems for satellites, ground segment, and user segment without government approval.
Increased Investment: The liberalized FDI policy is expected to attract significant foreign investment, boosting the growth and development of the Indian space sector.
With increased investment, Indian space companies can achieve greater sophistication in their products, expand their operations globally, and enhance their share in the global space economy.
The policy aims to empower New Space India Limited (NSIL) and other Indian space agencies to further develop their capabilities and expertise in areas like satellites and launch vehicles.
This policy change is expected to have a significant impact on the Indian space sector, attracting foreign investment, fostering innovation, and propelling India towards becoming a major player in the global space economy.