NEWS – The government has recently amended the foreign direct investment (FDI) policy in the space sector, intended to attract offshore investors specifically in satellite manufacturing and satellite launch vehicles segments.

HIGHLIGHTS

• Areas covered – FDI regulations for satellites, launch vehicles, associated systems or subsystems, spaceports, and space-related component manufacturing.
• Liberalised Entry Routes:
  • The amended policy introduces liberalised entry routes to encourage potential investors in Indian space companies.
  • These entry routes were approved by the Union Cabinet earlier in the year.
• Specific FDI Limits:
  • Up to 74% FDI is allowed for satellite manufacturing & operation, satellite data products, ground segment & user segment under the automatic route.
  • Beyond 74%, government route approval is required for these activities.
  • FDI up to 49% is permitted for Launch Vehicles, associated systems or subsystems, and the creation of spaceports under the automatic route, with government permission needed beyond this limit.
  • 100% FDI is allowed for manufacturing components, systems, or subsystems for satellites, ground segment, and user segments without requiring government permission.