Review of Foreign Direct Investment Policy on Space Sector · Press Note No. 1 (2024 Series)
DPIIT press note Press Note No. 1 (2024 Series) · 04 Mar 2024
Official title
Press Note No. 1 (2024 Series) : Review of Foreign Direct Investment (FDI) Policy on Space Sector
Official record
Open source pageSummary
Check the official recordWhat changed
The Government of India amends the Foreign Direct Investment policy for the space sector to define entry routes and sectoral caps. Entities involved in satellite manufacturing, operations, data products, and ground segments receive up to 74 percent investment through the automatic route. Investments beyond 74 percent require the government route. Entities involved in launch vehicles, associated systems, and spaceports receive up to 49 percent investment through the automatic route. Investments beyond 49 percent require the government route. Manufacturing of components and systems for satellites, ground segments, and user segments receives 100 percent investment through the automatic route. All investee entities must follow sectoral guidelines from the Department of Space. These changes take effect from the date of the FEMA notification.
What you must do
- Investee entities must comply with sectoral guidelines issued by the Department of Space.
Key dates
- Effective date
- Not dated
Document text
Government of India
Ministry of Commerce & Industry
Department for Promotion of Industry and Internal Trade
FDI Policy Section
Press Note No. 1 (2024 Series)
Subject:
Review of Foreign Direct Investment (FDI) Policy on Space Sector
The Government of India has reviewed the extant FDI policy on Space sector. Accordingly the following amendments have been made under Para 5.2.12 of the Consolidated FDI Policy Circular of 2020 as amended from time to time (FDI Policy):
5.2.12 SPACE SECTOR
| Sector/Activity | Sectoral Cap | Entry Route |
|---|---|---|
| 5.2.12.1
(1) Satellites Manufacturing & Operation (2) Satellite Data Products (3) Ground Segment & User Segment | 100% | Up to 74%: Automatic
Beyond 74%: Government route |
| 5.2.12.2
(1) Launch Vehicles and associated systems or subsystems (2) Creation of Spaceports for launching and receiving Spacecraft | 100% | Up to 49%: Automatic
Beyond 49%: Government route |
| Sector/Activity | Sectoral Cap | Entry Route |
|---|---|---|
| 5.2.12.3
Manufacturing of components and systems/ sub systems for satellites ground segment and user segment | 100% | Up to 100%: Automatic |
5.2.12.4 The investee entity shall be subject to sectoral guidelines as issued by Department of Space from time to time
5.2.12.5 Definitions:
(1) Satellites
Manufacturing & Operation: End to end manufacturing and supply of satellite and/or payload, establishing the satellite systems including control of in orbit operations of the satellite & payloads.
(2) Satellite Data Products: Reception, generation or dissemination of earth observation/remote sensing satellite data and data products including Application Interfaces (API).
(3) Ground Segment & User Segment:
- (a) Ground Segment: Supply of satellite transmit/receive earth stations including earth observation data receive station gateway, teleports satellite Telemetry, Tracking and Command (TTC) station Satellite Control Centre (SCC) etc.
- (b) User Segment: Supply of user ground terminals for communicating with the satellite which are not covered under the ground segment
(4) Launch Vehicles and Associated Systems or Subsystems: A vehicle and its stages or components that is designed to operate in or place spacecraft with payloads or persons in a suborbital trajectory earth orbit or outer space.
(5) Creation of Spaceports for launching and receiving Spacecraft: A spaceport (also referred as launch site) can be regarded as the base from which spacecraft are launched and consisting of facilities involving devices for transportation to from and via outer space.
(6) Manufacturing of Components and Systems/Subsystems for Satellites ground segment and user segment: Comprises the manufacturing and supply of the electrical, electronic and mechanical components systems/ subsystems for satellites, ground segment and user segment
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The above decision will take effect from the date of FEMA notification
(HimanPande)
Joint Secretary to the Government of India
DPIIT File No.: P 15019/2/2023 FDI Policy dated 04/03/2024
Copy forwarded to:
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Press Information Officer, Press Information Bureau- for giving wide publicity to the above Press Note.
-
Joint Secretary, Department of Economic Affairs,] For suitably incorporating the North Block, New Delhi policy changes in Foreign Exchange (Non Debt Management Instruments) Rules, 2019 and the relevant schedules thereof.
3
Reserve Bank of India, Foreign Exchange Department Mumbai -
NIC Section in the Department for Promotion of Industry and Internal Trade for uploading the Press Note on DPIIT's website.
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Hindi Section, DPIIT- for providing Hindi version.
Source details
- Source
- Department for Promotion of Industry and Internal Trade
- Type
- press note
- Published by source
- 04 Mar 2024
- Document number
- Press Note No. 1 (2024 Series)
- Issuing division
- Department for Promotion of Industry and Internal Trade
- Coverage area
- foreign-investment