India News | Govt Eases FDI Norms in Space Sector
Get latest articles and stories on India at LatestLY. The government on Wednesday eased Foreign Direct Investment (FDI) norms in the space sector with an aim to attract overseas players and private companies into the segment.
New Delhi, Feb 21 (PTI) The government on Wednesday eased Foreign Direct Investment (FDI) norms in the space sector with an aim to attract overseas players and private companies into the segment.
The decision was taken at the Cabinet meeting chaired by Prime Minister Narendra Modi.
Now, the satellite sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector, according to an official statement.
Presently, FDI in the space sector is allowed up to 100 per cent in the area of satellite establishment and operations through government route only.
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By changing the current policy, the government has allowed up to 74 per cent FDI under automatic route in satellites-manufacturing and operation, satellite data products, and ground and user segments.
Beyond this limit, government approval will be required in these areas for FDI, it said.
Up to 49 per cent FDI is allowed through the automatic route for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft.
Beyond 49 per cent, FDI in these activities would require government approval, it added.
Further, up to 100 per cent overseas investments are permitted under automatic route for manufacturing of components and systems/sub-systems for satellites, ground and user segments.
This increased private sector participation would help to generate employment, enable modern technology absorption and make the sector self-reliant.
It is expected to integrate Indian companies into global value chains.
Through the decision, the government seeks to liberalise the FDI policy provisions in the space sector by prescribing easy entry routes and providing clarity for overseas investments in satellites, launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft and manufacturing of space-related components and systems.
With this, companies will be able to set up their manufacturing facilities within the country, duly encouraging Make In India initiatives of the government.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)