FDI Policy Critical for Space Sector Development: Indian Space Association

Space News , India :- Lt Gen (retd) AK Bhatt, the Director General of the Indian Space Association, underscored the pivotal role of the impending Foreign Direct Investment (FDI) policy in shaping the trajectory of the space sector development. Anticipating the finalization of the government FDI policy, Bhatt expressed confidence that it would play a crucial role in garnering funds from prominent Indian corporations once they achieve profitability.

Envisioning a transformative impact, Bhatt highlighted the financial incentives that the FDI policy would offer to private players, enabling them to not only secure funds domestically but also tap into international sources. This optimistic outlook for 2024 sets the stage for a significant boost in the space sector financial landscape.

The Indian Space Association (ISpA) sheds light on the forthcoming FDI policy, suggesting the possibility of permitting 100 per cent foreign investment in satellite operations, launch vehicle manufacturing, and subsystem production. A notable shift from the existing FDI policy, which limits foreign investment in satellite establishment and operations to the government route, the proposed changes aim to facilitate up to 74 per cent overseas ownership through the automatic route and up to 100 per cent through the government route.

The impetus behind this policy revision is rooted in the ambition to attract global investors to contribute to the burgeoning field of satellite communications. Recognizing the potential of the Indian space startup ecosystem, the government seeks to surpass the $110 million investments garnered last year.

The achievements of 2023 set a compelling backdrop for the anticipated developments. India successful landing of Chandrayaan-3 and the launch of Aditya-L1, the nation inaugural solar mission, not only solidified India position in the global space economy but also fueled the momentum for the private space sector within the country.

Amidst noteworthy milestones in the government sector, the private domain also witnessed significant events, such as the ISRO/NSILs launch of the second batch of 36 OneWeb satellites in March 2023. OneWeb India, having secured approval from the Indian space regulator IN-SPACe, is poised to become the pioneer in offering satellite broadband services, marking a noteworthy stride in space-based communication services within India.