Space stocks surge up to 7% following clearance for 100% FDI in the space sector.
Likewise, stocks of Apollo Micro Systems, Walchandnagar Industries, Paras Defence and Space Technologies, Data Patterns (India), Bharat Electronics, Centum Electronics, and Zen Technologies are now trading with increases ranging from 1% to 4%.
During early morning trading today, shares in the space industry rose by up to 7% after the Union Cabinet approved modifications to the Foreign Direct Investment (FDI) policy on Wednesday.
The legislative change is intended to entice international players and private enterprises to participate in the space sector. This decision was made at a Cabinet meeting chaired by Prime Minister Narendra Modi.
According to a government press release, the amendment splits the satellite sub-sector into three discrete activities, each with specific constraints on foreign participation. The amended FDI policy now allows 100% FDI in the space sector, with liberalised entry points targeted at inviting potential investors to invest in Indian space enterprises.
- Weather Update: दिल्ली, उत्तराखंड समेत कई राज्यों में भारी बारिश के आसार, IMD ने जारी किया रेड और ऑरेंज अलर्ट
- Best Time To Visit Dalhousie For a Memorable Experience
Similarly, Apollo Micro Systems, Walchandnagar Industries, Paras Defence and Space Technologies, Data Patterns (India), Bharat Electronics, Centum Electronics, and Zen Technologies are all trading up 1% to 4%.
The government’s news statement stated that the liberalised FDI thresholds are consistent with the vision and strategy defined in the Indian Space Policy 2023. Previously, FDI could only be used to develop and operate satellites with government approval.
The government’s proposed reforms seek to liberalise FDI policy rules in the space sector, offering clarity and a more open entrance path for FDI in a variety of space-related activities.
These measures are consistent with the government’s commitment to boosting the space industry, as seen by the recent Chandrayaan-3 Moon landing success and increasing funding for the field. The expansion of launch services and the satellite internet sector has propelled the upward trend in space-related stocks.
