"Space Industry Gears Up: Revised FDI Norms Promise Tech & Funding Opportunities"

The space industry has welcomed the government of India's February 21 relaxation of Foreign direct investment (FDI) regulations, arguing that this will help the nation get access to new technologies and international investment capital.

The space ecosystem—particularly private participants like space-tech startups—has been eagerly awaiting the updated regulation, as seen by the increase in foreign investment interest these companies have received in recent years.

During a briefing for the Union Cabinet on February 21, Union Minister Anurag Singh Thakur declared that up to 100% FDI would be permitted through the automatic route for the manufacturing of satellite systems, subsystems, and other similar segments; up to 74% for the manufacturing of end-to-end satellites, and up to 49% for the launch vehicle and spaceport segment.

Pawan Kumar Chandana, the CEO and Co-founder of Skyroot Aerospace, a launch vehicle manufacturer located in Hyderabad, stated: "It (the revised space FDI norms) gives much needed regulatory clarity for foreign investments for all domains in India's space sector." As a launch vehicle, Skyroot will benefit from 49% FDI in the automated route and 100% FDI in the government route, which will increase investments and make capital access easier and more consistent with international standards."

This is now finally clear. The CEO and co-founder of Chennai-based Agnikul Cosmos, Srinath Ravichandran, told the magazine, "I think this will help all of us in our capital raise and growth plans." It is a huge boost for the sector as a whole.

Digantara's $10 million fundraising campaign emphasizes the importance of FDI in the space industry.

Lt. Gen. AK Bhatt (Retd), Director General of stated, "The liberal Foreign direct investment (FDI) limits by automatic route for end-to-end satellite manufacturing & operation, components and systems/ sub-systems for satellites, satellite data products and ground segment & user segment, launch vehicles, creation of spaceports will boost the confidence of all space industry members, including the biggest global players in the space and satellite domain."

In addition to Big Players like Bharti Airtel, L&T, and OneWeb, the ISpA represents 32 start-ups, including Pixxel, Agnikul Cosmos, Skyroot Aerospace, Dhruva Space, and Digantara.

This would enable India to obtain much-needed funding from both domestic and foreign investors, as well as the newest technological advancements. The space industry in India now makes up just 2% of the global space economy; Bhatt added, "This move will help the country to gain a much larger pie in the global market."