No imminent change to space FDI strategy

The Centre does not intend to alter its foreign direct investment (FDI) strategy in the space sector, said Pawan Goenka, chairman of the Department of Space-affiliated regulatory body for the space industry, Indian National Space Promotion and Authorization Centre (In-Space), on Monday.

- Shouvik Das

Based on the Union government's amended space FDI policy from February last year, India allows foreign investors to acquire up to 49% of a domestic space company that operates at the most critical sensitivity level without needing government approval.

While the move enabled foreign funds to officially invest in India's space startups, various parties have highlighted that the limited funding structure could hamper large funding rounds in the space industry.

"We don't have any plan in the short term to change the FDI policy in space. We'll continue to observe this industry, and our goal is to balance the industry between foreign investments and the prospects for domestic firms. We don't want India's domestic space ventures to be completely dependent on foreign investments, which is why a 49% cap has been put on direct investments in the space sector," Goenka said.