Space companies shoot for the moon as govt eases FDI rules
Space sector startups involved in satellite manufacturing, launch vehicle operations and component manufacturing are set to gain from the latest amendments to the foreign direct investment (FDI) rules for India’s space sector as they will help them tap global pools of capital to expand local manufacturing and production capacity, firms and experts told ET.
Pranav Roach, president, Hughes Network Systems India Ltd, expects the latest FDI announcements to accelerate momentum in the satellite sector, especially in attracting more players and services.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitMITMIT Technology Leadership and InnovationVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitHe, though, said that “allowing 100% automatic FDI in the space sector would have further augmented the ecosystem and made the Indian space sector an even more attractive destination for foreign investments”.
Awais Ahmed, chief executive, Pixxel, told ET that permitting up to 49% FDI for launch vehicles reflects balancing foreign investment with national security and technological sovereignty.
The 49% cap for launch vehicles reflects a cautious yet optimistic opening of the sector, he said.
Given the strategic importance of launch capabilities and the rapidly growing global demand for launch services, this cap ensures that domestic entities retain control and decision-making
