Indian Space Policy Amendment: Enhanced FDI Policy

  • The Union Cabinet, chaired by PM Shri Narendra Modi, has approved an amendment in the Foreign Direct Investment (FDI) policy on the space sector. 
  • The policy aims to enhance India’s potential in the space sector through enhanced private participation. 
  • The policy aims to augment space capabilities, develop a commercial presence in space, use space as a driver of technology development, pursue international relations, and create an ecosystem for effective space applications.
  • The existing FDI policy permits FDI in the establishment and operation of Satellites through the Government approval route only. 
  • The proposed reforms aim to liberalize the FDI policy provisions in the space sector by prescribing liberalized entry routes and providing clarity for FDI in Satellites, Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft, and manufacturing of space-related components and systems. 
  • The amendment allows 100% FDI in the space sector, with entry routes for various activities including Manufacturing & Operation, Satellite Data Products, Ground Segment & User Segment, Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft, and Manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment.
Posted in Current Affairs.