Government Eases Approval Process for Foreign Direct Investment in Space Sector

Foreign companies can invest in the manufacture of components and systems or sub-systems for satellites up to 100 percent without approval.

Government Eases Approval Process for Foreign Direct Investment in Space Sector

Photo Credit: Reuters

ISRO recently became the fourth country to complete a soft landing on the Moon

Highlights
  • The government is speeding up the privatisation of the space sector
  • India wants a five-fold increase in its share of the global launch market
  • The FDI policy reform is expected to boost employment in India
Advertisement

India will allow 100% foreign direct investment in the manufacture of satellite systems without official approval and eased the rules for launch vehicles, a government statement said, aiming for a greater share of the global space market.

India's space ambitions got a boost when it became the first country to land a spacecraft near the unexplored south pole of the moon in August - and the fourth to achieve a soft landing - just days after a similar Russian mission failed.

The government said in a statement late on Wednesday that foreign companies could invest in the manufacture of components and systems or sub-systems for satellites up to 100% without approval.

Foreign firms planning to build satellites in India would not require government approval up to 74% of the investment; for investment in launch vehicles, investment could go up to 49% without such approval, the statement said.

India has privatised space launches and is aiming for a five-fold increase in its share of the global launch market, which some expect to be worth $47.3 billion by 2032. India currently accounts for about 2% of the space economy.

The country hopes that liberalised rules for the space sector, long controlled by the government, will draw interest from Elon Musk's SpaceX and Jeff Bezos' Blue Origin, among others.

The foreign direct investment policy reform is expected to boost employment and will allow companies to set up manufacturing facilities in India, the government said in the statement.

"This will give India access to the latest tech advances and much-needed funds, not only from the country but from international investors too," said A.K. Bhatt, director general of the Indian Space Association.

Space-related India stocks such as Paras Defence and Space Technologies , MTAR Technologies, Taneja Aerospace and Aviation and Apollo Micro Systems climbed 2% to 5% on Thursday.

© Thomson Reuters 2024


Is the Samsung Galaxy Z Flip 5 the best foldable phone you can buy in India right now? We discuss the company's new clamshell-style foldable handset on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Space, Satellites, Government
Samsung Galaxy Fit 3 With Fall Detection, Emergency SOS Launched in India: Price, Specifications
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »