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Ministry of Finance notifies new Foreign Direct Investment (FDI) rules for space sector | Current Affairs | Vision IAS
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Ministry of Finance notifies new Foreign Direct Investment (FDI) rules for space sector

Posted 18 Apr 2024

2 min read

  • New rules ‘Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024’ amend Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
    • Government notified new rules under Foreign Exchange Management Act (FEMA), 1999.
    • FDI in India is governed by FDI Policy announced by Government of India and provisions of FEMA, 1999. 
  • Under amended FDI policy, 100% FDI through both automatic and government route is allowed which is in line with strategy under Indian Space Policy 2023.
    • Earlier, FDI was permitted to establish and operate satellites only through government’s approval route.

 

  • Key amendments
Space Sector/ActivitySectoral CapEntry route
  • Satellites-Manufacturing & Operation
  • Satellite Data Products
  • Ground Segment & User Segment

100%

Up to 74%: Automatic

Beyond 74%: Government route

  • Launch Vehicles and associated systems or subsystems
  • Creation  of Spaceports for launching and receiving Spacecraft

100%

Up to 49%: Automatic

Beyond 49%: Government route

  • Manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment

100%

Up to 100%: Automatic

 

  • Need of FDI in Space Sector
    • Integrate Indian companies into global value chains.
    • Attract potential foreign investors in Indian space companies and Enhance Ease of Doing Business.
    • FDI inflows generate employment and enhanced share of global space economy.

 

 

  • Tags :
  • Foreign Direct Investment (FDI)
  • Indian Space Policy 2023
  • FDI Rules for Space Sector
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