Now, the satellite sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector, according to an official statement.
Elevate Your Tech Prowess with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| IIM Kozhikode | IIMK Advanced Data Science For Managers | Visit |
| IIM Lucknow | IIML Executive Programme in FinTech, Banking & Applied Risk Management | Visit |
| Indian School of Business | ISB Professional Certificate in Product Management | Visit |
Presently, FDI in the space sector is allowed up to 100 per cent in the area of satellite establishment and operations through government route only.
By changing the current policy, the government has allowed up to 74 per cent FDI under automatic route in satellites-manufacturing and operation, satellite data products, and ground and user segments.
Beyond this limit, government approval will be required in these areas for FDI, it said.
Up to 49 per cent FDI is allowed through the automatic route for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft.
Discover the stories of your interest
Beyond 49 per cent, FDI in these activities would require government approval, it added. Further, up to 100 per cent overseas investments are permitted under automatic route for manufacturing of components and systems/sub-systems for satellites, ground and user segments.
This increased private sector participation would help to generate employment, enable modern technology absorption and make the sector self-reliant.
It is expected to integrate Indian companies into global value chains.
Through the decision, the government seeks to liberalise the FDI policy provisions in the space sector by prescribing easy entry routes and providing clarity for overseas investments 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.
With this, companies will be able to set up their manufacturing facilities within the country, duly encouraging Make In India initiatives of the government.
