Journalists film the live telecast of spacecraft Chandrayaan-3 landing on the moon at ISRO's Telemetry, Tracking and Command Network facility in Bengaluru, India, Aug 23, 2023. (PHOTO / AP)
BENGALURU - India will allow 100 percent 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 percent without approval.
The country hopes that liberalized 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
Foreign firms planning to build satellites in India would not require government approval for up to 74 percent of the investment; for investment in launch vehicles, the investment could go up to 49 percent without such approval, the statement said.
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India has privatized 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 percent of the space economy.
The country hopes that liberalized 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.
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"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, MTAR Technologies, Taneja Aerospace and Aviation and Apollo Micro Systems climbed 2 percent to 5 percent on Thursday.