Question

As of March 2024, the Government of India has allowed 100% FDI under the Automatic route in which of the following sectors?

• A. Science and technology sector
• B. Indian space sector
• C. Defence sector
• D. Education sector

Answer 1

Answer:

B. Indian space sector

As of March 2024, the Government of India has allowed 100% Foreign Direct Investment (FDI) under the Automatic route in the Indian space sector. The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the amendment in Foreign Direct Investment (FDI) policy on space sector. Now, the satellites sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector. The Indian Space Policy 2023 was notified as an overarching, composite and dynamic framework to implement the vision for unlocking India’s potential in Space sector through enhanced private participation. The said policy aims to augment space capabilities; develop a flourishing commercial presence in space; use space as a driver of technology development and derived benefits in allied areas; pursue international relations and create an ecosystem for effective implementation of space applications among all stakeholders. Under the amended FDI policy, 100% FDI is allowed in space sector. The liberalized entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space.