India eases approval process for foreign direct investment in space sector (updated)

Apollo Micro Systems

21/02/2024 18:40

(Recasts with policy details; changes dateline to Feb. 22 to
reflect ongoing story)
       BENGALURU, Feb 22 (Reuters) - 
    India will allow 100% foreign direct investment in the
manufacture of satellite systems without official approval and
eased the rules for launch vehicles, a government statement
said, aiming for a greater share of the global space market.
  
    India's space ambitions got a boost when it became the first
country to land a spacecraft near the unexplored south pole of
the moon in August - and the fourth to achieve a soft landing - 
just days after a similar Russian mission failed.
    The government said in a statement late on Wednesday that
foreign companies could invest in the manufacture of components
and systems or sub-systems for satellites up to 100% without
approval. 
        Foreign firms planning to build satellites in India
would not require government approval up to 74% of the
investment; for investment in launch vehicles, investment could
go up to 49% without such approval, the statement said.
  
    India has privatised space launches and is aiming for a
five-fold increase in its share of the global launch market,
which some expect to be worth $47.3 billion by 2032. India
currently accounts for about 2% of the space economy.
        The country hopes that liberalised rules for the space
sector, long controlled by the government, will draw interest
from Elon Musk’s SpaceX and Jeff Bezos' Blue Origin, among
others. 
  
        The foreign direct investment policy reform is expected
to boost employment and will allow companies to set up
manufacturing facilities in India, the government said in the
statement.
  
        "This will give India access to the latest tech advances
and much-needed funds, not only from the country but from
international investors too," said A.K. Bhatt, director general
of the Indian Space Association.
  
        Space-related India stocks such as Paras Defence and
Space Technologies  PRAF.NS , MTAR Technologies  MTAR.NS ,
Taneja Aerospace and Aviation  TANE.BO  and Apollo Micro Systems
 APLL.NS  climbed 2% to 5% on Thursday.  
    

 (Reporting by Nivedita Bhattacharjee, Angela Christy, Mrinmay
Dey, Kanjyik Ghosh; Editing by Emelia Sithole-Matarise and Gerry
Doyle)
 ((AngelaChristy.M@thomsonreuters.com;))