Space industry welcomes new FDI norms, expects $25 bn fresh investment in 10 years
India Revises FDI Norms for Space Sector, Expected to Attract $25bn Investment in Next Decade
Chennai, Feb 22 (IANS) – India’s amended Foreign Direct Investment (FDI) norms for the space sector are anticipated to bring in up to $25 billion in foreign investments over the next ten years, stated a senior official of the Space Industry Association-India (SIA-India). The new policy aims to boost collaboration between Indian and foreign companies, with rocket and satellite makers expressing their approval and hoping for further liberalization in the future.
Dr. Subba Rao Pavuluri, President of SIA-India, expressed optimism about the potential influx of FDI, stating that the move will stimulate growth, innovation, and technological advancements. The global space industry is projected to reach $558 billion by 2026, and with the implementation of liberalized FDI policies, India’s space industry is expected to significantly increase its GDP contribution and job creation in the coming years.
The much-awaited revised norms for FDI in the space sector were approved by the Indian Cabinet late on Wednesday, receiving positive feedback from industry insiders. The maximum FDI for rocket makers is set at 49 per cent under the automatic route, and anything beyond that level will require government permission. Similarly, for satellite manufacturing and operation, data products, and ground segment, the FDI under the automatic route is capped at 74 per cent.
Pawan Kumar Chandana, CEO of rocket maker Skyroot Aerospace, welcomed the revised policy and confirmed compliance with the new FDI limits. Additionally, industry experts are optimistic about the impact of the new FDI norms, with expectations of accelerated growth, innovation, and a more competitive private space ecosystem in India.
The liberalized FDI limits have been praised by industry lobby body Indian Space Association (ISA), with Lt-Gen AK Bhatt (Retd.), Director General, ISA expressing gratitude to the government for its forward-thinking reforms in the space sector. The move is expected to position India as a major player in the global space and satellite domain, with potential for significant growth and contribution to the global space economy.
In conclusion, the revised FDI norms for India’s space sector have the potential to attract substantial foreign investments, stimulate industry growth, foster innovation, and position India as a key player in the global space industry. The move has been welcomed by industry insiders, and it is expected to pave the way for unprecedented growth and innovation in the country’s space exploration and commercialization efforts.
