India Amends FDI Norms in Space Sector

India Amends FDI Norms in Space Sector mind map
Recent News
Amended FDI policy
100% FDI for Indian space sector
Up to 74% under Automatic Route
Satellite-manufacturing and operation
Satellite data products
Ground segment and user segment
Beyond 74% requires government approval
Up to 49% under Automatic Route
Creation of spaceports
Launching and receiving spacecraft
Launch vehicles and associated systems or subsystems
Beyond 49% requires government approval
Up to 100% under Automatic Route
Manufacturing of components and systems
Sub-systems for satellites
Ground segment and user segment
Boosts Indian space companies' growth
Encourages private sector participation
Expected to generate employment
Enables modern technology absorption
Makes sector self-reliant
Integrates Indian companies into global value chains
Amendment announced on February 21, 2024
To increase private sector participation
To integrate Indian companies into global value chains
74% FDI for satellite manufacturing and operation
49% FDI for launch vehicles and spaceports
100% FDI for manufacturing satellite components
Indian Space Association
Lt Gen. AK Bhatt, Director General
Praised government's liberal FDI policy
Automatic route for up to 100% FDI in certain areas
Government approval required beyond specified thresholds
Boosts confidence in space industry
Attracts global players in space and satellite domain
Helps achieve global scale of operations
Enhances share of global space economy
Managing strategic interests with liberalized FDI thresholds
Way Forward
Further details and amendments awaited
Foreign Exchange Management (Non-Debt Instrument) Rules, 2019

The recent amendment of FDI norms in India’s space sector marks a significant liberalization aimed at boosting growth and innovation. The new policy allows up to 100% FDI under the automatic route in various categories, promoting private sector participation and integrating Indian companies into global value chains. This move is expected to generate employment, enable technology absorption, and make the sector self-reliant. With the Indian Space Association welcoming these changes, the future looks promising for India’s space industry, potentially enhancing its share in the global space economy.

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