Last year brought many laurels for the Indian space sector under the aegis of the Indian Space Research Organization (ISRO). It made India one of the favorite investment hubs in the space sector promising tremendous growth and a bright future. To keep the momentum going, the Government of India recently revised the Foreign Direct Investment (FDI) policy to bring new foreign investment into the sector and boost its potential under the Indian Space Policy (ISP) 2023.
The motive behind refining the existing FDI policy is to welcome worldwide investment, promote the latest technology, and strengthen the country’s ability to explore unknown facts of the universe beyond Earth. The amendment has allowed 100% FDI through various entry routes in Satellite Manufacturing & Operations, Satellite Data Products, Ground Segment & User Segment, Launch Vehicles, and associated systems or subsystems, Creation of Spaceports for Launching and Receiving Spacecraft, Manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment through investee entities.
FDI revision brought multiple benefits for stakeholders including a smooth and seamless way of doing business in the space sector for which the government took the critical decision related to FDI policy. Increased frequency of FDI investment will boost the all-inclusive economic growth, employment prospects, and foreign reserves earnings for India. The introduction of flexible entry routes is made to welcome promising investors interested in funding Indian organizations associated with the space sector.
The latest reforms would upscale the sophistication of space products, and their operations to increase the share of India in the global space market. The ISP 2023, is considered a vital component for the growth of India’s space sector encompassing global collaboration, stakeholder participation, and research to promote advanced technology accelerating future successful missions.
Thus, the revised FDI policy will promise flexibility for global investors and the Indian space industry to witness substantial advancements through FDI flow to make it a vibrant space ecosystem. It will eventually open up new avenues in the Indian space sector to move forward with new energy and become a successful yet economical global hub for space exploration and satellite manufacturing and operations, and launch in the coming years.