India Opens Doors To Foreign Investment In Space Sector With New FDI Norms

New Delhi, Mar 7 (KNN) The Department for Promotion of Industry and Internal Trade (DPIIT) has announced significant changes in Foreign Direct Investment (FDI) regulations within the space sector following a decision by the Union cabinet on February 21.

As part of a concerted effort to attract foreign players and private companies, the government has now permitted 100 per cent overseas investment in the production of satellite components.

However, the investee entity will be subject to sectoral guidelines set forth by the Department of Space.

The satellite sub-sector has been categorized into three distinct activities, each with defined limits for foreign investment, according to an official statement.

Previously, FDI in the space sector was restricted to 100 per cent for satellite establishment and operations exclusively through government routes.

Under the revised policy, the government has now sanctioned up to 74 per cent FDI under the automatic route for satellite manufacturing and operation, satellite data products, as well as ground and user segments. Beyond this threshold, government approval will be mandatory for FDI in these areas.

Additionally, up to 49 per cent FDI is permissible through the automatic route for launch vehicles, associated systems or subsystems, and the development of spaceports. Any FDI exceeding 49 per cent in these activities will necessitate government approval.

Furthermore, the new norms allow for up to 100 per cent overseas investment under the automatic route for the manufacturing of components and systems or sub-systems for satellites, ground, and user segments.

(KNN Bureau)