The Indian government announced significant reforms to its space sector to attract Foreign Direct Investment (FDI) and strengthen its global standing. The government now allows 100% FDI in satellite system manufacturing without official approval. Meanwhile, the regulations for launch vehicles have also been relaxed.
These changes aim to position India competitively in the lucrative space market. India’s space achievement in the lunar mission signals its ambitions for global space dominance. The new policy permits foreign firms to invest up to 100% in satellite manufacturing and up to 74% without government approval.
Additionally, the investment thresholds for launch vehicles without approval are set at 49%, whereas privatisation efforts aim to increase India’s share of the global launch market. It is projected to reach $47.3 billion by 2032. The revised FDI policies are expected to attract interest from major players like SpaceX and Blue Origin, fostering economic growth and technology exchange.
The reforms are anticipated to boost employment and encourage local manufacturing. A.K. Bhatt from the Indian Space Association highlights the potential for technology transfer and investment influx. The market response has been positive, with space-related stocks experiencing significant gains.
