FDI Relaxation In Space Sector To Spur Innovation & Job Creation: Experts

ENA Sectors 2024-05-06 16:36:48 New Delhi, May 6 (KNN) The Indian government's decision to ease foreign direct investment (FDI) norms in the space sector by allowing 100 per cent overseas investment in satellite component manufacturing is expected to attract foreign players, start-ups, and boost demand for high-tech jobs, according to experts. Sreeram Ananthasayanam, Partner, Deloitte India, hailed the move as a significant step towards transforming India's space program and infrastructure development. He stated that the relaxation opens doors for the private sector to explore new business opportunities, leverage private investments, access cutting-edge technologies, and collaborate with global players. For the government, Ananthasayanam noted that the move would reduce the burden on public finances and enable the growth of the space ecosystem in India. He predicted that the burgeoning space industry would create a high demand for high-tech jobs for engineers, scientists, and other skilled professionals, fuelling innovation and propelling India's spacefaring ambitions. With around 200 registered space start-ups in India, Ananthasayanam emphasised the need for substantial investments to bolster the space ecosystem and enable more Indian start-ups to establish themselves. He highlighted that a handful of manufacturers supporting ISRO are already generating revenues in the hundreds of crores and employing thousands of individuals, but the sector needs at least double-digit numbers of such firms to truly scale. Revathy Muralidharan, Partner, IndusLaw, believes the increased competition from new players and strategic investors will force domestic players to develop cutting-edge, highly competitive technologies to maintain their positions in the Indian space market. The opening up of the sector to foreign investors will also bring much-needed liquidity into the capital-intensive industry, helping private players compete on a global scale. Iqbal Khan, Partner, Shardul Amarchand Managaldas & Co, emphasised the importance of higher private player participation in tapping commercial opportunities and generating jobs. He stated that the liberalised FDI norms would bolster opportunities for domestic companies aiming to launch their own satellite constellations for communication systems, real-time monitoring, and surveillance. (KNN Bureau) 37689 https://knnindia.co.in/news/newsdetails/sectors/fdi-relaxation-in-space-sector-to-spur-innovation-job-creation-experts 2024-05-06 16:36:48 knnindia.co.in FDI Relaxation In Space Sector To Spur Innovation & Job Creation: Experts