The Indian government has made a strategic move to liberalize the Foreign Direct Investment (FDI) policy in the space sector, signaling a shift towards greater private sector involvement and international collaboration. This change in policy introduces a tiered approach to FDI, allowing different levels of foreign investment across various space-related activities without requiring government approval.
This policy amendment is expected to invigorate the space sector by easing entry restrictions for foreign investors, fostering the development of satellites, launch vehicles, and associated infrastructure like spaceports. Start-ups in the space industry have expressed positive sentiments, viewing this move as a significant boost for growth and innovation.
The government’s decision aligns with the Indian Space Policy of 2023, aiming to augment space capabilities, stimulate technology development through space ventures, enhance international relations, and build a robust ecosystem for implementing space applications among stakeholders.
The establishment of IN-SPACe in 2020 and the support provided to private space ventures, including the launch of private rockets and the creation of a private spaceport within ISRO’s campus, underscore the government’s commitment to expanding the private space industry.
This policy update is a landmark reform that positions India as a formidable player in the global space economy, attracting foreign investment and expertise while nurturing domestic innovation in space technology.
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