| 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.
Conclusion:
- 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.
