Allowed up to 100 per cent FDI in the space sector
21 Feb 2024
On 21 February 2024, the Union Cabinet of India allowed up to 100 per cent FDI through the automatic route in its space sector to lower entry barriers for foreign players, fostering a more inclusive environment for international investments, technology transfers, and collaborative research in space technology. Previously, FDI in satellite establishments and operations was permitted only with Government approval. The policy has been reformed as per the terms of the Indian Space Policy 2023, which promotes a liberalised threshold across different facets of the space sector, including:
1) Manufacturing of Components and Systems: 100 per cent FDI is allowed via the automatic route for manufacturing components, systems, or sub-systems related to satellites, ground segments, and user segments.
2) Satellite Manufacturing and Operation: FDI up to 74 per cent is permitted under the automatic route, but anything exceeding this limit requires government approval.
3) Launch Vehicles and Spaceports: Up to 49 per cent FDI is allowed under the automatic route while requiring government approval beyond this threshold.
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Type:
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Entry and establishment (Ownership and control)
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Industry:
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Manufacturing (Manufacture of machinery and equipment n.e.c., Manufacture of transport equipment)
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Services (Scientific research and development, Other professional, scientific and technical activities)
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Sources:
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india-briefing, India Opens Space Sector to Global Investors with 100% FDI Allowed, https://www.india-briefing.com/news/india-allows-100-percent-fdi-in-space-sector-key-policy-changes-31306.html/#:~:text=FDI%20rules%20for%20the%20space%20sector%20in%20India&text=Under%20the%20updated%20policy%20framework,ground%20segments%2C%20and%20user%20segments., 22 Feb 2024
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Government of India, Cabinet approves amendment in the Foreign Direct Investment (FDI) policy on Space Sector, https://pib.gov.in/PressReleseDetail.aspx?PRID=2007865, 21 Feb 2024
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reuters, India eases approval process for foreign direct investment in space sector, https://www.reuters.com/world/india/india-approves-100-fdi-space-sector-2024-02-21/, 22 Feb 2024
