Foreign Direct Investment (FDI) Policy liberalized in the space sector

• The Government of India has liberalized the FDI policy for space sector i.e., satellites establishment and operation which was earlier under 100% Government route sector. 
• In light of the amendments, the sector has been divided further into three categories with defined limits for foreign investment in each sub sector, as provided below:
  a) Satellites – Manufacturing and Operation, Satellite Data Products and Ground Segment and User Segment: Up to 74% under the automatic route and beyond 74% under the government route.
  b) Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft: Up to 49% under the automatic route and beyond 49% under the government route.
  c) Manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment: 100% under the automatic route.
• In addition to above, the investee company in the space sector should continue to adhere with the guidelines issued by Department of Space from time to time.
  
• The proposed amendment will be effective on the date of issuance of FEMA notification by the official gazette.

Source: Press release by Ministry of Finance dated 21 February 2024 read with Press Note No. 1 (2024 series) dated 4 March 2024