NEW DELHI: The government’s recent decision to allow 100% foreign direct investment (FDI) in the manufacturing of satellite components has been welcomed by experts as a significant step towards transforming the country’s space program.
This move is expected to attract
foreign players
and startups, boosting demand for
high-tech jobs
in the sector.
Sreeram Ananthasayanam, partner at Deloitte India, thinks that this will open doors to new business opportunities for the
private sector
, enabling them to leverage private investments, access better technologies, and collaborate with global players.
“For the private sector, it opens doors to new business opportunities, it presents an opportunity to leverage private investments to enhance space capabilities, access to cutting-edge technologies to accelerate and develop next-gen space products, and collaboration with global players,” Ananthasayanam said.
The easing of
FDI norms
is also expected to reduce the burden on public finances, allowing the government to allocate funds more effectively to develop the space ecosystem in India.
“This burgeoning space industry will create a high demand for high-tech jobs for engineers, scientists, and other skilled professionals. The initiatives by government organizations, academic institutes will create the talent pool for meeting the demand will further fuel innovation and propel India’s spacefaring ambitions,” said Ananthasayanam .
He further said that manufacturing of subsystems related to launch vehicles, satellites, and ground stations by the private sector is expected to find a direct revenue stream in upcoming missions of the Indian Space Research Organisation (ISRO) and other space programs worldwide.
However, the
space sector
presents unique challenges, including technological complexities and long gestation periods. Substantial investments are essential to bolster the space ecosystem and enable more Indian startups to establish themselves.
“To further bolster the space ecosystem and enable more Indian startups to establish themselves, substantial investments are essential. These investments will not only drive innovation and technological advancement but also create a conducive environment for the growth of the space industry in India,” Ananthasayanam said.
