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Foreign Direct Investment UPSC NOTE

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  Foreign Direct Investment (FDI) policy on space sector PM Modi-led Union Cabinet on Wednesday took a series of key decisions, which includ...

 Foreign Direct Investment (FDI) policy on space sector

  • PM Modi-led Union Cabinet on Wednesday took a series of key decisions, which included the approval for amendments to the existing FDI policy on space sector. 

  • Under the amended policy, 100% FDI is allowed in space sector. 

  • The liberalised entry routes are aimed to attract potential investors to invest in Indian companies in space.

  • The amended policy extends the facility of up to 74% FDI under the automatic route for satellite manufacturing and operation, satellite data products and ground/user segment.

  • Up to 49% FDI under the automatic route will be allowed for launch vehicles and associated systems or subsystems.

  • This 49% includes, creation of spaceports for launching and receiving spacecraft

  • Beyond 49%, these activities will be under government route.

  • Mr. Thakur said up to 100% FDI under the automatic route would be permitted for manufacturing of components and systems/sub-systems for satellites, ground segment and user segment.

  • The satellites sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector.

  • As per the existing FDI policy, foreign investment is allowed in establishment and operation of satellites via government-approval route only.

  • The Cabinet also took a decision related to the continuation of Flood Management and Border Areas Programme scheme with ₹4,100-crore outlay for five years from 2021-22 to 2025-26.

  • Under its flood management component with an outlay of ₹2,940 crore, Central assistance will be provided to States.


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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Foreign Direct Investment UPSC NOTE
Foreign Direct Investment UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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