In a significant move aimed at boosting its space manufacturing capabilities, India has announced the allowance of 100 percent Foreign Direct Investment (FDI) in all three sectors of space manufacturing. The decision, which was welcomed by the US-India Strategic Partnership Forum (USISPF), is expected to propel India’s prowess in the global space arena.
According to a statement released by the USISPF, the Government of India, in collaboration with the Department of Space, has granted 100 percent FDI in all three sectors of space manufacturing. Notably, 74 per cent FDI will be allowed in the automatic route for manufacturing satellite, satellite data products, ground segment, and user segment. Additionally, automatic FDI of up to 49 per cent will be permitted for launch vehicles and associated systems and subsystems.
The move has been hailed as a strategic decision that promises a significant boost to manufacturing companies operating within the space sector. By allowing enhanced private participation, India aims to unlock its potential in space manufacturing, marking a crucial milestone towards self-reliance and global recognition in space endeavors.
The USISPF emphasized that this decision will not only foster collaboration between the United States and India in the space sector but also enhance partnerships between the private and public sectors of both countries. The forum expressed its readiness to collaborate with the Indian government and industry stakeholders to facilitate technology transfers, foster partnerships, and drive collaborative initiatives aligning with mutual strategic goals.
This collaborative approach highlights the commitment of both nations to advancing the US-India partnership in the dynamic realm of space exploration and technology. With India opening its doors to increased foreign investment in space manufacturing, the stage is set for a new era of innovation and collaboration in the global space industry.
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