On 16 April 2024, the Indian Ministry of Finance amended the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules) revising the permissible limit of foreign direct investment (FDI) in the space sector effective the date of the notification i.e. 16 April 2024.
Under the amended FDI policy, 100% FDI is now allowed in the space sector. The amended schedule under the NDI Rules provides that:
- FDI in manufacturing of components and systems or sub-systems for satellites, ground segment and user segment is permissible up to 100% under the automatic route.
- FDI in satellite manufacturing and operation, satellite data products and ground segment and user segment is permissible up to 74% under the automatic route beyond which government route will be applicable.
- FDI in launch vehicles and associated systems or sub-systems and creation of spaceports for launching and receiving spacecraft is permissible up to 49% under the automatic route beyond which government route will be applicable.
The NDI Rules have been notified to align with the strategy formulated under the Indian Space Policy 2023, following consultations with stakeholders such as Indian National Space Promotion and Authorisation Centre (IN-SPACe), Indian Space Research Organisation (ISRO) and NewSpace India Limited (NSIL) as well as industrial stakeholders.
The press release can be accessed at: