New Delhi, Feb 21:
The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved amendments in Foreign Direct Investment (FDI) policy on space sector paving way for greater FDI inflows and thereby contributing to growth of investment, income and employment.
Now, the satellites sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector.
“Under the amended FDI policy, 100% FDI is allowed in space sector. The liberalised entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space,” an official statement said.
As per the amended FDI policy, upto 74% FDI would be allowed under automatic route in satellites-manufacturing & operation, satellite data products and ground segment & user segment. Beyond 74%, these activities are under government route.
Upto 49% FDI under automatic route would be permitted for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft. Beyond 49% these activities are under government route.
In manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment, FDI upto 100% will be permitted under automatic route.
“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. With this, companies will be able to set up their manufacturing facilities within the country duly encouraging ‘Make In India (MII)’ and ‘Aatmanirbhar Bharat’ initiatives of the Government,” an official statement said.
