Union Cabinet approves amendment in FDI policy on space sector, upto 100% in making components for satellites

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100% FDI is allowed in space sector. The liberalized entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space," the government said in its press release. The entry route under the amended policy are as follows: > Upto 74% FDI under Automatic route: Satellites-Manufacturing & Operation, Satellite Data Products and Ground Segment & User Segment.

Beyond 74% these activities are under government route. > Upto 49% under Automatic route: Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft. Beyond 49% these activities are under government route.

> Upto 100% under Automatic route: Manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment. As per the existing FDI policy, FDI is permitted in establishment and operation of Satellites through the Government approval route only. "In line with the vision and strategy under the Indian Space Policy 2023, the Union Cabinet has eased the FDI policy on Space sector by prescribing liberalised FDI thresholds for various sub-sectors/activities," the press release said.

ALSO READ: India can have a $40-100 billion space industry by 2040 It added that the Department of Space consulted with internal stakeholders like IN-SPACe, Indian Space Research Organisation (ISRO) and NewSpace India Limited (NSIL) as well as several industrial stakeholders. "Non-Government Entities (NGEs) have developed capabilities and expertise in the areas of satellites and launch vehicles. With increased investment, they would be able to achieve sophistication of products, global scale of operations and enhanced share of global space economy," the