Cabinet approves amendment in Foreign Direct Investment (FDI) policy on the space sector | Current Affairs | Vision IAS
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Cabinet approves amendment in Foreign Direct Investment (FDI) policy on the space sector

Posted 22 Feb 2024

1 min read

  • To date, FDI was permitted in the establishment and operation of Satellites through the Government approval route only.
  • Under the amended FDI policy, 100% FDI is allowed in the space sector.
    • Now, the satellite sub-sector has been divided into three different activities with defined limits for FDI in each such sector. 

 

  • Limits are given in the box.
Upto 74% under Automatic route
  • Satellites-Manufacturing & Operation, Satellite Data Products and Ground Segment & User Segment.
    • Beyond 74% these activities are under government route.
Upto 49% under Automatic route
  • Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft.
    • Beyond 49% these activities are under government route.
Upto 100% under Automatic route
  • Manufacturing of components and systems/ sub-systems for satellites, ground segment, and user segment.

 

 

 

 

 

 

 

 

 

 

 

 

 

  • The amendment is in line with the vision and strategy under the Indian Space Policy 2023.

 

  • Significance of the amendment
    • Expected to integrate Indian companies into global value chains.
    • Generating employment, enabling modern technology absorption, and making the sector self-reliant.
    • Encouraging 'Make In India' and 'Atmanirbhar Bharat' initiatives of the Government.
  • Tags :
  • FDI
  • Indian Space Policy
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