Amendments in FDI Policy for the Space Sector

FDI Policy for Space Sector has been amended to allow 100% foreign investment, promoting private sector involvement in India’s space industry.

About Amendments in FDI Policy for the Space Sector:

• These changes are in line with the Foreign Exchange Management Act (FEMA) of 1999 and aim to bolster private sector involvement in the space industry, as outlined in the Indian Space Policy of 2023.
• 100% Foreign Direct Investment (FDI) is now allowed in the space sector. This can be accessed through two main avenues: the automatic route and with government approval.
• The new policy marks a significant shift from previous regulations where foreign investment was primarily restricted to satellite establishment and operations, necessitating government approval.

Key Amendments in FDI Policy for the Space Sector:

• Manufacturing of Space Components and Systems: 100% FDI allowed, entirely through the automatic route.
• Satellites – Manufacturing and Operations: 100% FDI is permitted, with up to 74% through the automatic route and beyond 74% requiring government approval.
• Satellite Data Products: Similar to satellite operations, 100% FDI is allowed, with automatic approval up to 74% and government approval required for investments beyond this threshold.
• Ground and User Segments: These segments also allow 100% FDI with the same conditions as satellite data products.
• Launch Vehicles and Associated Systems: Investors can own up to 100% with up to 49% through the automatic route, while anything beyond this will need government approval.
• Creation of Spaceports: The policy permits 100% investment in spaceports, with up to 49% via the automatic route and the remainder requiring government clearance.

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