Space sector related opportunity we should not miss for short or long term game
Hello friends as a individual investor we should never miss investing opportunities that will turn profitable in short term
Government inactive to improve Space sector take a quick note on this on below points
India approves 100% foreign direct investment in Space inactive
This is a step to make India’s Space Policy 2023 a reality.
The global space economy is currently valued at around $447 billion according to estimates by McKinsey.
India’s share is about $8 billion which is a measly 2% of the global space economy.
I had a chance to meet the ISRO Chairman last month, and he is quite ambitious about private sector participation in the Space sector.
ISRO has set a target to increase India’s share of the global space economy to 8% by 2033 and 15% by 2047.
India earlier allowed 100% foreign investment for the establishment and operations of satellites but only with government approval.
The amended policy allows under automatic route -
🚀 100% FDI for Manufacturing of components and systems/ sub-systems for satellites, ground segment, and user segment.
🚀 74% for Satellites Manufacturing and Operation, Satellite Data Products and Ground Segment and User Segment.
🚀 49% FDI for Launch Vehicles and associated systems or subsystems and Creation of Spaceports for launching and receiving Spacecraft.
This privatisation will create more employment, allow the adoption of newer technologies, make the sector self-reliant, and also support the Make in India initiative.
What will ensure more private participation is a long-term commitment from the government to ensure demand for space-related products and services.
Space is a highly capital-intensive sector and most products are made to order and have a long lifecycle.
Space-related Indian stocks
The 5 listed companies that have a big presence in this sector are MTAR tech, Data Patterns, Apollo Microsystems, Bharat Electronics, and Cyient DLM.
The only concern is their stocks have rallied a lot so valuations will be expensive.
But if you think for long time prospects game is still on
Hope you like this points
Wise investing
Points taken from
Source - TV18
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