Reforms in FDI policy are expected to boost employment.
Bengaluru:
India relaxed rules to allow 100% foreign direct investment (FDI) in the space sector in an aim to boost investment, according to a government notification on Wednesday.
India’s space ambitions got a boost when it became the first country to land a spacecraft near the moon’s uncharted south pole in August – and the fourth to achieve a soft landing – just days after a similar Russian mission failed.
The government said in a statement that the FDI policy reforms are expected to boost employment and allow companies to set up manufacturing facilities in the country.
“This will give India access to the latest technological advancements and much-needed funds not only from within the country but also from international investors,” Indian Space Association Director General AK Bhatt said.
Under pressure from Prime Minister Narendra Modi, India has privatized space launches and aims to increase its share of the global launch market fivefold, which some expect to be worth $47.3 billion by 2032 . India currently contributes about 2% to the overall space economy.
Information Technology Minister Ashwini Vaishnav had last month said the country was eyeing $100 billion of annual foreign direct investment (FDI) in the next few years.
India attracted FDI inflows of $33 billion in the first half of the fiscal year starting in April 2023. It recorded total FDI of $71 billion in the last financial year.
