Cabinet approves amendment in Foreign Direct Investment (FDI) policy on the space sector | Current Affairs | Vision IAS
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    Cabinet approves amendment in Foreign Direct Investment (FDI) policy on the space sector

    Posted 22 Feb 2024

    1 min read

    • To date, FDI was permitted in the establishment and operation of Satellites through the Government approval route only.
    • Under the amended FDI policy, 100% FDI is allowed in the space sector.
      • Now, the satellite sub-sector has been divided into three different activities with defined limits for FDI in each such sector. 

     

    • Limits are given in the box.
    Upto 74% under Automatic route
    • Satellites-Manufacturing & Operation, Satellite Data Products and Ground Segment & User Segment.
      • Beyond 74% these activities are under government route.
    Upto 49% under Automatic route
    • Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft.
      • Beyond 49% these activities are under government route.
    Upto 100% under Automatic route
    • Manufacturing of components and systems/ sub-systems for satellites, ground segment, and user segment.

     

     

     

     

     

     

     

     

     

     

     

     

     

    • The amendment is in line with the vision and strategy under the Indian Space Policy 2023.

     

    • Significance of the amendment
      • Expected to integrate Indian companies into global value chains.
      • Generating employment, enabling modern technology absorption, and making the sector self-reliant.
      • Encouraging 'Make In India' and 'Atmanirbhar Bharat' initiatives of the Government.
    • Tags :
    • FDI
    • Indian Space Policy
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