India’s space regulator is inching closer towards making foreign investments into India’s growing space sector easier, its head has said.
What Happened? Pawan Kumar Goenka, chairperson of space regulator Indian Space Promotion and Authorisation (IN-SPACe), told Moneycontrol that a much-awaited foreign direct investment (FDI) policy for the space sector is in its final stages and will be released soon.
Why It Matters: This policy is crucial for private space companies and startups that have been attracting interest from foreign investors. Currently, restrictions on foreign investments in the space sector have caused difficulties for startups to secure funding.
Currently, ventures in the space sector can be completely funded through FDI in the area of satellite establishment and operations, but only via government channels.
The upcoming FDI policy will hopefully provide clearer guidelines and opportunities for foreign investments, enabling the growth of the Indian space startup ecosystem.
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Goenka told the business publication that he expects that Indian space startups will receive more investments this year compared to the $110 million (₹900 crore) they received last year.
In just five months, the Indian space sector has already secured $35 million (₹286 crore) in investments, and more discussions are ongoing, he said.
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