On the basis of the review, the government has made amendments under para 5.2.12 of the Consolidated FDI Policy Circular of 2020, as amended from time to time (FDI Policy).
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In a significant move, the Centre has reviewed the extant Foreign Direct Investment (FDI) policy on the space sector.
On the basis of the review, the government has made amendments under para 5.2.12 of the Consolidated FDI Policy Circular of 2020, as amended from time to time (FDI Policy).
According to a press release by the Ministry of Commerce and Industry, the amendments pertain to the following:
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Satellites: Manufacturing and Operation- The sectoral cap for FDI has been set at 100 per cent. For investments up to 74%, automatic approval will be granted, while investments beyond 74% will require government approval.
Satellite Data Products, Ground Segment and User Segment- The sectoral cap for FDI remains at 100%, with automatic approval for investments up to 100%.
Launch Vehicles and Associated Systems or Subsystems- The sectoral cap for FDI has been set at 100%, with automatic approval for investments up to 49%. Investments beyond 49% will require government approval.
Creation of Spaceports for Launching and Receiving Spacecraft- This category has been introduced, allowing 100% FDI with automatic approval for investments up to 100%.
Manufacturing of Components and Systems/Subsystems for Satellites, Ground Segment, and User Segment- The sectoral cap for FDI remains at 100%, with automatic approval for investments up to 100%.
These amendments are expected to streamline FDI regulations and attract more investment into India’s burgeoning space industry. The liberalization of FDI policy is in line with the government’s vision to promote ease of doing business and facilitate greater participation of foreign investors in key sectors of the economy.
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