Facts for Prelims (FFP)
Source: Economic Times
Context: The Ministry of Finance has notified Foreign Direct Investment (FDI) regulations in the space sector under the Foreign Exchange Management Rules, allowing Indian space start-ups to access global capital.
- 74% FDI for satellite manufacturing, up to 49% for launch vehicles, and up to 100% for component and system manufacturing.
- Investment beyond 49% for spaceports requires government approval.
A foreign direct investment is a substantial, lasting investment made by a company or government into a foreign concern.
FDI investors typically take controlling positions in domestic firms or joint ventures and are actively involved in their management.
