Cabinet approves amendment in the Foreign Direct Investment policy in the space sector

The Union Cabinet led by Prime Minister Narendra Modi has approved the amendment in Foreign Direct Investment (FDI) policy on space sector. The satellites sub-sector has now been divided into three different activities with defined limits for foreign investment in each such sector. The Indian Space Policy 2023 was notified as an overarching, composite and dynamic framework to implement the vision for unlocking India’s potential in Space sector through enhanced private participation.

As per the existing FDI policy, FDI is permitted in establishment and operation of Satellites through the Government approval route only.  In line with the vision and strategy under the Indian Space Policy 2023, the Union Cabinet has eased the FDI policy on Space sector by prescribing liberalized FDI thresholds for various sub-sectors/activities.

Department of Space consulted with internal stakeholders like IN-SPACe, ISRO and NSIL as well as several industrial stakeholders. NGEs have developed capabilities and expertise in the areas of satellites and launch vehicles. With increased investment, they would be able to achieve sophistication of products, global scale of operations and enhanced share of global space economy.

The proposed reforms seek to liberalize the FDI policy provisions in space sector by prescribing liberalized entry route and providing clarity for FDI in Satellites,  Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft and manufacturing of space related components and systems.