India Opens Up Space Sector to Boost Growth

GS-3 Mains : Economy

Short Notes or Revision Notes

Question : Discuss the significance of this policy shift in aligning with India’s goal to capture a larger share of the global space economy.

Government Announces Liberalized FDI Policy:

  • 74% FDI allowed for satellite manufacturing and data products (automatic route).
  • 49% FDI allowed for launch vehicles and spaceports.
  • Up to 100% FDI allowed for manufacturing space components.

India’s Growing Space Program:

  • Recent successes include Chandrayaan lunar mission and solar laboratory.
  • ISRO plans to launch astronauts in 2024.
  • Private companies like Skyroot Aerospace are emerging.

Policy Shift Towards Collaboration:

  • Traditionally focused on self-reliance.
  • New policy recognizes the need for collaboration in a capital and technology-intensive field.

Goal: Capture a Larger Share of the Global Space Economy:

  • India’s current share: 2-3%.
  • Government aims for over 10% by 2030.
  • IN-SPACe estimates $22 billion investment needed in the next decade.

Space Policy 2021:

  • Redefined ISRO’s role towards research and development.
  • Recognized the private sector as a key player.

FDI Relaxation Benefits:

  • Increased investment and technological know-how.
  • Regulatory clarity for private spaceport development.

Balancing Act:

  • Need for regulatory oversight for national security and welfare objectives.
  • Importance of market freedom for growth.


  • ISRO-dominated space sector is evolving.
  • Liberal FDI is the first step towards a balanced space economy. 





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