NEW DELHI: Foreign countries and overseas entities can henceforth make 100 percent direct investment in the manufacture of components, systems or sub-systems for satellites in India without any official approval, the federal Cabinet has decided.
‘This increased private sector participation would help to generate employment, enable modern technology absorption and make the sector self-reliant,’ a Cabinet statement today explaining the decision said.
‘It is expected to integrate Indian companies into global value chains. With this, companies will be able to set up their manufacturing facilities within India,’ the statement added.
Under the amended National Space Policy of 2023, investors who want to build complete satellites in India will no longer require any government approval if their investment is up to 74 percent of the project cost.
For building launch vehicles, an investment of up to 49 percent of the project cost can be made without government approval. This is known as the ‘automatic investment ro
ute’.
Any investment over 74 percent and 49 percent in the two above-mentioned categories will require prior government approval.
The liberalisation of foreign investment rules is aimed at achieving a five-fold increase in India’s share of the global market for space launches.
WAM/Krishnan Nayar
Source: Emirates News Agency