Wednesday 17 April 2024

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India allows 100pc FDI in satellite systems manufacture

NEW DELHI, February 23, 2024

Foreign countries and overseas entities can make 100% direct investment in the manufacture of components, systems or sub-systems for satellites in India without any official approval, the federal Cabinet has decided.
“This increased private sector participation would help to generate employment, enable modern technology absorption and make the sector self-reliant,” a Cabinet statement explaining the decision said, according to a WAM report.
“It is expected to integrate Indian companies into global value chains. With this, companies will be able to set up their manufacturing facilities within India,” the statement added.
Automatic investment route
Under the amended National Space Policy of 2023, investors who want to build complete satellites in India will no longer require any government approval if their investment is up to 74% of the project cost.
For building launch vehicles, an investment of up to 49% of the project cost can be made without government approval. This is known as the “automatic investment route.”
Any investment over 74% and 49% in the two above-mentioned categories will require prior government approval.
The liberalisation of foreign investment rules is aimed at achieving a five-fold increase in India’s share of the global market for space launches.--TradeArabia News Service


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