In a bid to enhance its position in the global space market, India has announced significant easing of regulations regarding foreign direct investment (FDI) in the space sector. According to a government statement, India will now permit 100% FDI in the manufacturing of satellite systems without the need for official approval. Additionally, rules for investment in launch vehicles have been relaxed.
India’s space program gained international recognition when it became the first country to successfully land a spacecraft near the unexplored south pole of the moon in August. This achievement came shortly after a failed Russian mission, further highlighting India’s growing prowess in space exploration.
Under the new regulations, foreign companies can invest up to 100% in the manufacture of components, systems, or sub-systems for satellites without requiring prior approval. For satellite manufacturing in India, government approval is not needed for investments up to 74%, while for launch vehicles, investments can go up to 49% without approval.
India aims to significantly increase its share in the global launch market, which is projected to reach $47.3 billion by 2032. Currently accounting for only 2% of the space economy, India hopes that these liberalized regulations will attract interest from major players like Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin.
The government believes that these policy reforms will not only boost employment but also encourage companies to establish manufacturing facilities in India. A.K. Bhatt, director general of the Indian Space Association, commented, “This will give India access to the latest tech advances and much-needed funds, not only from the country but from international investors too.”
Following the announcement, stocks of space-related Indian companies such as Paras Defence and Space Technologies, MTAR Technologies, Taneja Aerospace and Aviation, and Apollo Micro Systems saw an increase of 2% to 5% on Thursday.