The Indian government considers a notable shift in its foreign direct investment (FDI) policies. Particularly in the rapidly growing space sector of the country. This move comes as part of a broader effort to enhance the ease of doing business in India.
As of now, the Indian space sector limits FDI to a maximum of 100 percent. It permits investment in satellite establishment and operations. Furthermore, it demands pursuing FDI through the government route, requiring applicants to obtain permissions from relevant authorities.
In addition, Rajesh Kumar Singh, the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), made this announcement at an event in preparation for the Vibrant Gujarat Summit. Singh revealed that the government is considering the liberalization of FDI norms within the space sector.
Singh also placed this discussion in the broader context of FDI liberalization in India. He noted that significant progress has been made in this regard, except for a few strategic sectors that have remained limited. He highlighted the commitment of the government to maintaining an open and investor-friendly environment.
What’s more, the Secretary likened it to an “Open Sky policy” that covers nearly all sectors of the economy. He suggested that this trend of liberalization is likely to continue, with the possibility of extending it to sectors such as space.
Furthermore, the Secretary highlighted the government’s focus on improving the ease of doing business and streamlining logistics. He pointed out that India’s global rankings in these areas have shown a consistent upward trajectory. This reflects the nation’s dedication to fostering a conducive environment for businesses to thrive.
In conclusion, this potential shift in India’s FDI liberalization could open up new opportunities for foreign investors and businesses interested in participating in India’s rapidly expanding space industry.
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