Chennai
India’s decision to amend its Foreign Direct Investment (FDI) regulations for the space sector is anticipated to attract fresh foreign investments amounting to $25 billion over the next decade and foster numerous collaborations between Indian and foreign entities, as per a senior official of the Space Industry Association-India (SIA-India).
The amended FDI norms have been welcomed by Indian rocket and satellite manufacturers and their representative bodies, who anticipate further liberalization in the future. The revised regulations, announced by the Indian Government, align with industry expectations and are poised to stimulate substantial capital inflows.
Dr. Subba Rao Pavuluri, President of SIA-India and Chairman and Managing Director of Ananth Technologies, highlighted the significance of India’s decision to open its doors to foreign investors amid the global space industry’s rapid expansion. He emphasized the potential for significant economic growth and job creation within India’s space sector, projecting a GDP contribution of $50 billion by 2030 and the generation of over 500,000 new jobs.
The Cabinet’s approval of the revised FDI norms for the space sector has been positively received by industry stakeholders. Pawan Kumar Chandana, Co-Founder and CEO of Skyroot Aerospace, expressed satisfaction with the aligned policy and expressed optimism for future liberalization.
The revised policy stipulates that FDI for makers of rockets and associated systems is capped at 49 percent under the automatic route, with government approval required beyond this threshold. Similarly, for satellite-related activities, FDI up to 74 percent is permitted under the automatic route.
The industry lauded the government’s forward-looking reforms, which are expected to bolster India’s position in the global space market, ultimately contributing to a larger share of the global space economy.
