India has relaxed regulations to permit 100% foreign direct investment (FDI) in the space sector, aiming to encourage investment, according to a government notification released on Wednesday.
India’s space aspirations received a significant push when it achieved the historic feat of landing a spacecraft near the unexplored south pole of the moon in August, becoming the first country to do so and the fourth to accomplish a soft landing, shortly after a Russian mission faced setbacks.
The reform in FDI policy is anticipated to enhance employment opportunities and enable companies to establish manufacturing facilities within the country, as stated by the government.
“This move will provide India with access to cutting-edge technological advancements and much-needed capital, not only from domestic sources but also from international investors,” remarked AK Bhatt, the director general of the Indian Space Association.
Under the leadership of Prime Minister Narendra Modi, India has embarked on the privatization of space launches, with the aim of achieving a five-fold surge in its portion of the global launch market. Projections suggest this market could reach a value of $47.3 billion by 2032. Presently, India’s contribution to the overall space economy stands at approximately 2%.
Last month, India’s Information Technology Minister, Ashwini Vaishnaw, expressed the country’s aspiration to attain $100 billion in annual foreign direct investment (FDI) in the coming years.
In the first half of the financial year commencing in April 2023, India garnered FDI inflows amounting to $33 billion. This follows a total FDI of $71 billion recorded in the preceding financial year.
