Ahead of Musk’s India visit, govt notifies liberalised FDI norms for space sector

In run-up to Musk's India visit: The government has notified amendments to the foreign direct investment (FDI) policy by announcing liberalised FDI norms. In a significant step towards boosting foreign investment in the space sector, the government has notified amendments to the foreign direct investment (FDI) policy by announcing liberalised FDI norms. This move comes days ahead of the much-awaited visit of SpaceX CEO Elon Musk to India, indicating a proactive approach to attract offshore investors.

The amendments to the foreign direct investment policy, notified through a gazette dated April 16, 2024, are aimed at encouraging investment in satellite manufacturing, satellite launch vehicles, and associated systems or subsystems. The revised policy provides clarity on FDI regulations in various segments of the space industry, including the creation of spaceports for launching and receiving spacecraft, as well as the manufacturing of space-related components and systems.

The gazette notification, titled "Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024," outlines the liberalised entry route for foreign investors interested in contributing to India's burgeoning space sector. This regulatory update is poised to facilitate smoother collaboration between domestic and international players, fostering innovation and growth in the Indian space industry.

(With PTI inputs)