In a stellar move that’s set to rocket India’s space ambitions to new heights, the Union Cabinet, captained by Prime Minister Narendra Modi, has given the green light to an extraordinary amendment in the Foreign Direct Investment (FDI) policy focusing on the space sector. This cosmic shift aims to propel India’s vision of an Atmanirbhar Bharat, or a self-reliant India, beyond the stratosphere.
Under the amended policy, the universe is the limit, as the space sector is now open for business to foreign investors, particularly in certain sub-sectors and activities. This policy reform is not just a small step for FDI, but a giant leap for Ease of Doing Business in India, expected to attract a meteor shower of foreign investment, boosting investment, income, and job creation.
With this intergalactic decision, the Indian Space Policy 2023, a dynamic and comprehensive framework, is set to implement a vision that unlocks India’s potential in the space sector through enhanced private participation. It’s an ambitious roadmap to augment space capabilities, develop a thriving commercial presence in space, and use space as a catalyst for technological advancement.
Previously, FDI in the establishment and operation of satellites was possible only through the government’s approval. However, aligning with the Indian Space Policy 2023, the FDI policy has been recalibrated, offering a more liberalized investment threshold for various sub-sectors and activities.
The Department of Space, in consultation with key stakeholders including IN-SPACe, ISRO, NSIL, and several industrial entities, has recognized the burgeoning capabilities and expertise in areas such as satellites and launch vehicles. With this influx of investment, Indian space entities aim to achieve product sophistication, global operational scale, and a larger slice of the global space economy pie.
The FDI policy liberalization includes a range of activities – from manufacturing and operation of satellites, satellite data products, ground segment & user segment, launch vehicles, spaceports, to the manufacturing of space-related components and systems. The entry routes under the amended policy are as varied as the stars, with up to 74% investment allowed under the Automatic route in certain areas, and up to 100% in others.
This paradigm shift in policy is more than just opening doors to global investors; it’s about launching a new era of employment, modern technology absorption, and self-reliance in the space sector. It’s expected to seamlessly integrate Indian companies into global value chains and encourage the establishment of manufacturing facilities in India, aligning with the ‘Make In India’ and ‘Atmanirbhar Bharat’ initiatives.
In summary, with this policy, India is not just reaching for the stars; it’s inviting the world to join in its space odyssey. The future of India’s space sector looks brighter than ever, and it’s all systems go for a journey that promises to be nothing short of astronomical.
