CHENNAI: Space sector players say the government’s move to further open up foreign direct investment (FDI) will attract significant foreign capital which is crucial for the strategic sector.
The long-pending demand for liberalisation of FDI norms in space companies has been addressed by the government on Wednesday with the amendment to the FDI policy. The satellite sector is divided into three sections with defined limits for each category.
The changes would help the country to increase market share in the space market, which currently accounts for little over 2% of the global space economy, said Lt. Gen. AK Bhatt (Retd), Director General of Indian Space Association. The liberal FDI limits by automatic route will boost the confidence of all space industry members, including the biggest global players in the space and satellite domain, he added. “This will give India access to the latest tech advances and much-needed funds not only from the country but from international investors too.”
Speciale Invest, a venture capital firm with investments in launch vehicles, satellite manufacturing and earth observation, communication and in-orbit economy said the policy amendment is a strong signal of the country’s preparedness for making for the world, where India will be a dominant contributor to the growing global space sector. “Global space economy is estimated at $546 billion, India’s share is estimated to reach USD 44 billion in 10 years and could entail investments to the tune of $20 billion”.
Space mkt share to go up
Changes will help country to raise share in space market, which accounts for little over 2% of global space economy, said Lt. Gen. AK Bhatt (Retd), Director Gen. of Indian Space Association