Facts for Prelims (FFP)
Source: TH
Context: The Union Cabinet, approved amendments to the Foreign Direct Investment (FDI) policy in the space sector, allowing 100% FDI to attract investors to Indian companies in space.
- Under the amended policy, up to 74% FDI is permitted under the automatic route for satellite-related activities, and up to 49% for launch vehicles and associated systems.
- Beyond these limits, government approval is required.
- Additionally, up to 100% FDI is allowed under the automatic route for manufacturing components and systems for satellites.
The decision aims to increase private sector participation, generate employment, and integrate Indian companies into global value chains.
