Amendment in Foreign Direct Investment (FDI) Policy on Space Sector
The Union Cabinet has approved an amendment in the FDI policy on the Space Sector to enhance Ease of Doing Business and promote the vision of an Atmanirbhar Bharat.
- FDI policy amendment aims to liberalize the Space sector for foreign direct investment in specified sub-sectors.
- Now, satellites sub-sector is divided into three activities with defined limits for foreign investment in each.
- Indian Space Policy 2023 focuses on enhancing private participation, technology development, and international relations in the space sector.
- Benefits of the amendment include 100% FDI allowance and enhanced private sector participation in activities like satellite manufacturing and launch vehicles.
Key Points:
- Liberalized FDI policy in the Space sector.
- Division of satellites sub-sector into defined activities for foreign investment.
- Focus on private participation, technology development, and international relations in space.
- Amendment allows 100% FDI in space sector and encourages Make In India initiatives.
"The FDI policy reform will enhance Ease of Doing Business in the country, leading to greater FDI inflows and thereby contributing to growth of investment, income and employment."
Potential Exam Questions:
- What is the significance of the recent amendment in the FDI policy on the Space Sector?
- How does the Indian Space Policy 2023 aim to enhance India's position in the global space economy?
- Explain the different entry routes for FDI in the space sector as per the amended policy.
Summary: The recent amendment in the FDI policy on the Space Sector signals a shift towards liberalization, allowing for enhanced foreign investment in specific sub-sectors. This move aims to boost Ease of Doing Business, attract investors, and promote self-reliance in line with the vision of an Atmanirbhar Bharat.