Government on FDI in space sector: In a major step aimed at boosting investment, the government announced the relaxation of rules to permit 100 per cent foreign direct investment (FDI) in the space sector.

The country’s space endeavours received a notable boost when it achieved the milestone of becoming the first country to land a spacecraft near the unexplored south pole of the moon in August.

The success came shortly after a similar Russian mission failed, further highlighting India's advancements in space exploration.

The FDI policy reform is anticipated to stimulate employment opportunities and enable companies to establish manufacturing facilities within the country, as stated by the government.

AK Bhatt, Director General of the Indian Space Association, remarked, “This will provide India access to cutting-edge technological advancements and much-needed capital, not only from domestic sources but also from international investors.”

Under the leadership of Prime Minister Narendra Modi, India has initiated the privatisation of space launches and aims to increase its share of the global launch market fivefold.

Projections suggest that the global launch market could reach $47.3 billion by 2032, and India, currently contributing about 2 per cent to the overall space economy, seeks to capitalise on this growth.

Ashwini Vaishnaw, India's Information Technology Minister, recently stated the country's ambition to attract $100 billion in annual foreign direct investment (FDI) in the coming years.

In the first half of the financial year starting April 2023, India attracted FDI inflows amounting to $33 billion. In the previous financial year, the country recorded a total FDI of $71 billion.

(With Reuters Inputs)