Govt Simplifies Approval Process for Foreign Direct Investment in Space Sector

New Delhi: Centre has announced significant reforms in the space sector to attract foreign investment and bolster its position in the global space market. The new policy allows for 100% foreign direct investment (FDI) in satellite system manufacturing without the need for official approval. It has also eased regulations for launch vehicle production.

This move follows India’s recent success in becoming the first nation to land a spacecraft near the unexplored south pole of the moon, enhancing its space ambitions. The government aims to capitalize on this momentum by encouraging foreign companies to invest in satellite components and systems manufacturing, with up to 100% FDI permitted without approval.

Specifically, foreign firms can invest up to 74% in satellite manufacturing and 49% in launch vehicle production without requiring government approval. India is keen to privatize space launches and aims to significantly increase its share in the global launch market, projected to reach $47.3 billion by 2032.

The liberalization of space sector regulations is expected to stimulate job growth and facilitate the establishment of manufacturing facilities in India. Officials believe that these reforms will attract investments from both domestic and international players, including prominent companies like Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin.