Opening Up

Syllabus: GS-III, Subject: Science and technology, Topic: Space technology, Issue: New FDI regime in space sector

New FDI policy for space sector:

  • India’s liberalized FDI rules aim to position the country as a space power.
  • The policy allows up to 74% FDI for satellite manufacturing and data products, 49% for launch vehicles and spaceports, and 100% for manufacturing components.

Factors that necessitated a new policy:

  • India’s evolving space program, including missions like Chandrayaan and plans for sending astronauts,
  • Private companies such as Skyroot Aerospace are making substantial contributions to the space sector.
  • The government’s ambition to increase India’s share of the global space economy to over 10% by 2030 requires a significant investment of $22 billion.


  • The Space Policy of April last year acknowledged the significance of private sector engagement and redefined ISRO’s role.
  • The liberalized FDI regime seeks to encourage greater investment, offer regulatory clarity, and foster increased participation by private entities.
  • Space technology remains vital for various welfare and national security goals.
  • India’s space economy demands a balance between regulatory oversight and market freedom, with the liberal FDI regime serving as an initial measure.
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