Govt reviews FDI policy in space; up to 74% automatic FDI allowed

The government Tuesday said it has reviewed the extant Foreign Direct Investment (FDI) Policy in the space sector and allowed upto 74% FDI under automatic route in satellites-manufacturing and operation, satellite data products and ground and user segments. This includes end-to-end manufacturing and supply of satellite and payload, establishing the satellite systems including control of in-orbit operations of the satellite and payloads.

Last month, the Cabinet approved the amended FDI norms to enhance ease of doing business and attract investments, and divided the satellite sub-sector into three different activities with defined limits for foreign investment in each such sector.

Satellite Data Products refer to reception, generation or dissemination of earth observation/remote sensing satellite data and data products including Application Interfaces (API).


“The investee entity shall be subject to sectoral guidelines as issued by Department of Space from time to time,” the commerce and industry ministry said in a statement, adding that the decision will take effect from the date of FEMA notification.

Ground segment includes satellite Telemetry, Tracking and Command station, and Satellite Control Centre, among others while the user segment includes supply of user ground terminals for communicating with the satellite, which are not covered under the ground segment.

As per the amended policy, upto 49% FDI is allowed through automatic route for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft. Beyond 49%, FDI in these activities would require government approval.

A spaceport (also referred as launch site) is the base from which spacecraft are launched, and consisting of facilities involving devices for transportation to, from and via outer space.

Further upto 100% overseas investments are permitted under automatic route for manufacturing of components and systems/ sub-systems for satellites, ground and user segments. This comprises the manufacturing and supply of the electrical, electronic and mechanical components systems/ subsystems for satellites, ground segment and user segment.