Govt allows 100 % FDI for manufacturing of components for satellites via automatic route

FDI in space sector: The Government of India has reviewed the extant Foreign Direct Investment (FDI) Policy on Space sector, the government release said on Tuesday.  The government has amended some provisions of FDI policy circular of 2020. 

For satellites and manufacturing operation, satellite data products, and ground segment and user segment, 74 per cent FDI is allowed via automatic route and beyond 74 per cent, FDI is allowed via government route. 

Under Satellite data products, the government has notified 100 per cent sectoral cap, allowing automatic entry up to 74 per cent and beyond 74 per cent via government route.  Similarly, under the ground segment and user segment,  the government has a notified 100 per cent FDI, and the entry upto 74 per cent is through automatic route and beyond 74 per cent is through government route. 

Also, for launch vehicle and associated systems or subsystems, and creation of spaceports for launching and receiving spacecraft, the government notified the sectoral cap of 100 per cent, upto 49 per cent via automatic route and above 49 per cent via government route. 

Unlike the above sectors, for manufacturing of components and systems/subsystems for satellites, ground segment, and user segment, the government said that 100 per cent FDI can come in via automatic route.  Unlike other sectors, where the automatic route is allowed till 74 per cent and 49 per cent.