Tesla CEO Elon Musk is expected to engage with various Indian space firms during his visit from April 21 to 22.
New Delhi: In a bid to attract foreign investors in satellite manufacturing and launch vehicles, the government has announced amendments to the foreign direct investment (FDI) policy in the space sector.
The gazette notification, titled "Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024," aims to facilitate potential investments in Indian space companies.
Furthermore, 100 per cent FDI is allowed for the manufacturing of components and systems/sub-systems for satellites, ground segments, and user segments without government permission.
Aligned with the vision and strategy outlined in the Indian Space Policy 2023, the Union Cabinet has relaxed the FDI policy in the space sector by introducing liberalised thresholds for various sub-sectors and activities.
Tesla CEO Elon Musk is expected to engage with various Indian space firms during his visit from April 21 to 22.
New Delhi: In a bid to attract foreign investors in satellite manufacturing and launch vehicles, the government has announced amendments to the foreign direct investment (FDI) policy in the space sector. The amendments, notified through a gazette notification dated April 16, 2024, prescribe a liberalised entry route and offer clarity on FDI in satellites, launch vehicles, and associated systems or subsystems, as well as the creation of spaceports.
The gazette notification, titled "Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024," aims to facilitate potential investments in Indian space companies. The Union Cabinet had previously granted approval for these amendments.
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The announcement comes just ahead of the scheduled visit of Tesla CEO Elon Musk , who is expected to engage with various Indian space firms during his visit from April 21 to 22. Additionally, approvals for Musk's satellite internet project, Starlink, are nearing finalisation.
Under the amended policy, up to 74 per cent FDI is allowed for satellite manufacturing and operation, satellite data products, and ground segment and user segment activities under the automatic route. Beyond 74 per cent, government permission is required.
For launch vehicles and associated systems or subsystems, and the creation of spaceports, FDI up to 49 per cent is permitted under the automatic route. However, beyond 49 per cent, government approval is necessary.
Furthermore, 100 per cent FDI is allowed for the manufacturing of components and systems/sub-systems for satellites, ground segments, and user segments without government permission.
Previously, FDI was permitted in the establishment and operation of satellites only through the government approval route.
Aligned with the vision and strategy outlined in the Indian Space Policy 2023, the Union Cabinet has relaxed the FDI policy in the space sector by introducing liberalised thresholds for various sub-sectors and activities.
The Department of Space consulted with internal stakeholders such as IN-SPACe, ISRO, and NSIL, as well as several industrial stakeholders. The move aims to enhance the capabilities and expertise of domestic entities in satellite and launch vehicle technology, enabling them to compete globally and expand their share of the global space economy.
