Centre notifies liberalised FDI norms for space sector

New Delhi, April 17

The government has notified amendments to the foreign direct investment policy in the space sector to attract offshore investors in satellite manufacturing and satellite launch vehicles segments.

Amendment made in the FDI policy for the space sector through a gazette notification dated April 16, 2024, prescribes liberalised entry route and provides clarity for FDI in satellites, launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving Spacecraft and manufacturing of space-related components and systems.

The Union Cabinet earlier this year gave approval to these amendments. The notification comes days ahead of the scheduled visit of Tesla CEO Elon Musk who is expected to meet with various Indian space companies during his visit from April 21 to 22. Concurrently, approvals for Musk’s satellite internet project, Starlink, are nearing finalization.

As per the notification, up to 74 per cent FDI for satellite manufacturing and operation, satellite data products and ground segment & user segment are allowed under automatic route. Beyond 74 per cent these activities are under government route. — PTI

Attracting investors

• Up to 74% FDI for satellite manufacturing and operation, satellite data products and ground segment allowed under automatic route
• FDI up to 49% permitted for launch vehicles, creation of spaceports for launching and receiving spacecraft under automatic route
• Besides, 100% FDI allowed for manufacturing of components and systems for satellites without government nod