The announcement comes ahead of Tesla CEO Elon Musk’s upcoming visit to India, where he is set to interact with several Indian space companies from April 21 to 22. Moreover, final approvals for Musk’s Starlink satellite internet project are on the verge of completion.
In a bid to attract foreign investors in satellite manufacturing and launch vehicles, the government has announced amendments to the foreign direct investment (FDI) policy in the space sector. The amendments, notified through a gazette notification dated April 16, 2024, prescribe a liberalised entry route and offer clarity on FDI in satellites, launch vehicles, and associated systems or subsystems, as well as the creation of spaceports.
The gazette notification, titled “Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024,” aims to facilitate potential investments in Indian space companies. The Union Cabinet had previously granted approval for these amendments.
Under the amended policy, up to 74 per cent FDI is allowed for satellite manufacturing and operation, satellite data products, and ground segment and user segment activities under the automatic route. Beyond 74 per cent, government permission is required.
For launch vehicles and associated systems or subsystems, and the creation of spaceports, FDI up to 49 per cent is permitted under the automatic route. However, beyond 49 per cent, government approval is necessary.