India has promoted investment in space sector by increasing the limit of foreign funding.

After opening up to private players four years ago, India has updated official regulations in the space sector to attract global investors and companies. The new Foreign Direct Investment (FDI) policy increases limits on foreign investment, which will potentially lead to renewed interest in the South Asian space community.

Private and public actors in India are taking measures to increase participation in the country’s space sector. India’s space agency, the Indian Space Research Organization (ISRO), has also made significant progress in the past few months garnering global attention, including successful landing on the moon like him Chandrayaan-3 spacecraft and Partnership with NASA Upon joining the Artemis Accords. However, restrictions in foreign direct investment limited the country’s scope to attract international investors and delayed funding for some of India’s growing space tech startups.

On Wednesday, the Indian Cabinet led by Prime Minister Narendra Modi… approved an amendment Its FDI norms allow increased foreign investment in the space sector, up to 100% in some cases. The Government of India has defined three different categories under the revised policy:

• Up to 49% (foreign ownership) for launch vehicles and related systems and sub systems, construction of spaceports for launching and receiving spacecraft.
• Up to 74% for satellite manufacturing and operations, satellite data products and ground segment, and user segment.
• Up to 100% for manufacturing of components and systems and sub systems for satellites, ground segment and user segment.

Foreign investment beyond the given limit requires government approval.

In June 2020, the Government of India passed its space sector reforms and established a new agency, the Indian National Space Promotion and Authorization Centre, to enable private companies to utilize ISRO resources and infrastructure.

Last year also the country presented its space policy Detailing the guidelines and rules for private participation. New Delhi also Its age-old rules were replaced by a new Telecom Act Laying the groundwork for global satellite-based broadband service providers, including Elon Musk’s Starlink,

There are around 190 space tech startups in India that offer such solutions. launch vehicle, space situational awareness And hyperspectral imagery, Investments in Indian space startups reached over $124 million last year government data, The country’s space economy is projected to reach $44 billion by 2033 (from $8.4 billion last year).

Industry body Indian Space Association, which counts space tech startups and private companies among its members, is hopeful that the updated FDI norms will help increase India’s presence in the global space economy from the current mere 2%.