Liberalized FDI Policy Aims to Boost Private Participation and Foster Self-Reliance
Bengaluru, NFAPost: In a significant move towards realizing the vision of an Atmanirbhar Bharat (Self-reliant India), the Indian Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved amendments to the Foreign Direct Investment (FDI) policy on the space sector. This decision marks a pivotal step in liberalizing the sector and enhancing opportunities for foreign investors.
Under the revised policy, the space sector has been opened up to increased foreign investment, aiming to foster ease of doing business in the country while stimulating growth in investment, income, and employment. The amendment comes in line with the Indian Space Policy 2023, a comprehensive framework designed to unlock India’s potential in space exploration through greater private participation.
Previously, FDI in the establishment and operation of satellites required government approval. However, with the new amendments, the sector has been divided into distinct activities, each with defined limits for foreign investment. This move is expected to attract potential investors and facilitate the growth of Indian companies in the space domain.
Key highlights of the amended FDI policy include:
- 100% FDI allowed in the space sector.
- Liberalized entry routes for various activities, encouraging private sector participation.
- Specific FDI thresholds for different sub-sectors/activities, ranging from satellite manufacturing to spaceports creation.
- Enhanced private sector participation is expected to generate employment, foster technology absorption, and promote self-reliance.
- Integration of Indian companies into global value chains, aligning with the ‘Make In India’ and ‘Atmanirbhar Bharat’ initiatives of the Government.
The amendments are a result of extensive consultations with stakeholders, including the Department of Space, ISRO, NSIL, and industrial players. By liberalizing FDI provisions, the government aims to spur innovation, drive technology development, and propel India’s position in the global space economy.
With these reforms, the Indian space sector is poised to embark on a new era of growth, innovation, and self-reliance, paving the way for a brighter future in space exploration and technology development.
