New FDI policy for space likely to be out by August 2023

A draft of the Foreign Direct Investment (FDI) in the space sector which is in the final stages at present, is expected to come out by August 2023.

The Space Commission has already approved it, according to Pawan Goenka, chairman of the Indian National Space Promotion and Authorization Centre (IN-SPACe).

The Draft Space FDI Policy would allow 100 percent FDI in the following three different types of space activities:

  1. Satellite establishment and operations
  2. Launch vehicle operation
  3. Manufacturing, and sub-system manufacturing

This threshold of the FDI limit will vary for each of the three types of above-mentioned types activities and may range from 49% to 100%. This move is intended to promote collaboration, innovation, and technological improvements in the Space sector.

Currently, India only allows FDI in the space sector for satellite establishment and operations through the ‘government route.’

Also, it is worth mentioning that the Indian space sector, valued at $9.6 billion in 2020, and contributes only about 2% of the global space economy of about $470 billion.

However, it is targeted for the sector to reach $13 billion by 2025 and, further, aim by 2030 to capture about 10% of the global space economy i.e., a four to five-fold growth in 5 to 6 years.