India's space industry is at a pivotal moment, poised for unprecedented growth thanks to a series of progressive reforms. In a landmark policy shift, the government has substantially liberalized Foreign Direct Investment (FDI) norms, opening up the sector to global capital and expertise.
The new policy allows for 100% FDI under the automatic route in the manufacturing of components for satellites and ground systems. For the manufacturing and operation of satellites themselves, up to 74% FDI is now permitted without prior government approval. This strategic move aims to attract potential investors and foster a vibrant private space ecosystem, allowing India to compete more effectively on the global stage.
The timing couldn't be better. According to ISRO Chairman Dr. V Narayanan, India is currently a global leader in launch services, having deployed 433 satellites for 32 countries. However, its share of the commercial space market remains under 2%. The new FDI policy, combined with a projected demand for three times the current number of satellites, is expected to be a major catalyst. With the government's support and a burgeoning private sector now over 300 startups strong, the goal is to expand India's share of the global commercial space market to a ambitious 8-10% within the next decade.