Space Sector: 100% FDI approved in satellite equipment, boost investment in space sector – space sector 100 fdi approved in satellite equipment boost to investment in space sector

The government on Wednesday eased foreign direct investment (FDI) norms in the space sector by allowing 100 per cent foreign investment in making satellite components, in efforts to attract foreign and private companies into the space sector. This decision was taken in the Union Cabinet meeting chaired by Prime Minister Narendra Modi.

According to the official statement, the satellite sub-sector of space has been divided into three distinct activities. Apart from this, the limit of foreign investment has also been fixed separately for each sector. At present up to 100 percent FDI is allowed in the space sector. This permission has been given for satellite installation and operation with the approval of the government.

Under the change made in this policy, the government has approved up to 74 percent FDI under the automatic route in areas like satellite manufacturing and operations, satellite data. For investment exceeding this limit in these areas, approval will have to be taken from the government.

FDI up to 49 percent has been allowed under the automatic route in launch vehicles and related systems and sub-systems, construction of 'spaceports' for launch and return of spacecraft. FDI beyond this will require government approval.

Additionally, foreign investment up to 100 per cent has been permitted under the automatic route for manufacturing equipment and systems and sub-systems for satellites and ground and user segments. According to the statement, increasing private participation in the space sector will help in creating jobs, adopting modern technology and making the sector self-reliant.

First Published – February 21, 2024 | 11:08 PM IST
(Business Standard staff has changed only the headline and photo of this report; the rest of the news has been published without any changes from a shared news source.)

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