Newsnomics AJAY ANGELINA reporter |
he Indian government, has decided to significantly relax the foreign direct investment (FDI) approval process in the space sector in order to expand its share of the global space market.
The Indian government said in a statement, “Foreign companies can invest up to 100% in the manufacturing of satellite components and systems without government approval.” “Foreign companies seeking to develop satellites in India do not need government approval for up to 74% of their investments,” the statement said.
“In the case of investments in launch vehicles, approval is not required for up to 49% of their investments” it said.
The Indian government also emphasized, “We expect that the FDI policy reform will allow companies to esta blish manufacturing facilities in India, leading to increase employment.”
Anil Kumar Bhatt, Secretary General of the Indian Space Association (ISpA), said, “This opportunity will enable us to raise the necessary funds from domestic as well as international investors.”
India, which privatized its space launch business, has set a goal of expanding its share of the global space market five fold over the next decade. Currently, India accounts for about 2% of the global space economy.
The global space launch market is expected to grow from $9bn (£7bn) this year to more than $20bn in 2030.
In August last year, India became the fourth country to pull off a controlled landing on the surface, after the US, China and the former Soviet Union.
