Updated May 5th, 2024 at 13:51 IST

Experts optimistic as government eases FDI norms in space sector

The regulatory shift, announced last month, permits 100 per cent overseas investment in satellite component manufacturing.

Reported by: Business Desk
Experts optimistic as government eases FDI norms in space sector | Image:Freepik
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Government eases FDI norms: In a move hailed by experts, the government's recent decision to relax foreign direct investment (FDI) regulations within the space sector is anticipated to attract foreign players and startups, potentially stimulating demand for high-tech jobs.

The regulatory shift, announced last month, permits 100 per cent overseas investment in satellite component manufacturing, aimed at enticing international entities and private firms into the segment.

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Sreeram Ananthasayanam, Partner at Deloitte India, hailed the amendment as a pivotal stride towards transforming India's space programme infrastructure, citing newfound business prospects and opportunities for private sector involvement. He emphasised the potential for leveraging private investments to bolster space capabilities and foster collaboration with global counterparts.

Ananthasayanam noted the impending surge in demand for high-tech jobs, foreseeing collaboration between government organisations and academic institutes to nurture talent pools and propel innovation.

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Highlighting the revenue prospects for private sector involvement in manufacturing subsystems, Ananthasayanam pointed to the lucrative opportunities presented by upcoming missions by the Indian Space Research Organisation (ISRO) and international space programmes.

Revathy Muralidharan, Partner at IndusLaw, emphasised the competitive impetus brought about by increased market competition and the infusion of liquidity from foreign investors. She predicted heightened FDI inflows, particularly from strategic investors and private equity players.

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Echoing similar sentiments, Iqbal Khan, Partner at Shardul Amarchand Managaldas & Co, underscored the significance of private sector engagement in tapping commercial opportunities and fostering job creation. He welcomed the liberalised FDI norms, projecting a surge in domestic space endeavours, including satellite constellations for communication systems and real-time surveillance.

Overall, the regulatory overhaul is poised to invigorate India's space sector, positioning it favourably for increased global competitiveness and innovation.

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(with PTI inputs)

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Published May 5th, 2024 at 13:51 IST