India’s space industry is on the cusp of a major transformation with the cabinet approval of amendments to the Foreign Direct Investment (FDI) policy on the Space Sector dated February 21, 2024. The Government had notified the much-awaited Indian Space Policy, 2023 in April last year, to replace the existing Satcom policy, 1997.

The existing policy permitted FDI in the establishment and operation of satellites only through the Government approval route. The amended policy has eased the FDI policy on the Space sector by prescribing liberalized FDI thresholds for various sub-sectors/activities to balance the need for innovation in India with India’s wider strategic interests.

The amended policy allows 100% FDI under the automatic route for manufacturing components and systems for satellites, ground segments, and user segments. This eliminates the need for government approval, attracting global players and boosting technological advancements.

For satellites (manufacturing and operation), satellite data products, and ground and user segments, 74% FDI under the automatic route has been permitted. For launch vehicles and associated systems/subsystems, as well as the creation of spaceports, 49% FDI under the automatic route is permitted. It is pertinent to note that Government approval will be required in cases where FDI exceeds these thresholds.

To access the notification, click here.