Government Reviews Foreign Direct Investment Policy on Space Sector

The Government of India has recently conducted a thorough review of the Foreign Direct Investment (FDI) Policy in the Space sector, aiming to foster growth and innovation in this critical domain. This review has led to significant amendments under Para 5.2.12 of the Consolidated FDI Policy Circular of 2020, as amended periodically. The updated policy framework is set to pave the way for enhanced participation and collaboration in various segments of the space industry.

Here are the key amendments introduced:

5.2.12 SPACE SECTOR

5.2.12.4

• The investee entity shall be subject to sectoral guidelines as issued by the 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:
   • 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.
   • 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 are 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 to as a launch site) can be regarded as the base from which spacecraft are launched, 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.

These amendments will be effective from the date of FEMA notification.

This updated policy reflects the Government’s commitment to encouraging investment, innovation, and technology transfer in India’s burgeoning space sector. It seeks to attract more foreign capital and expertise, fostering partnerships that will contribute to the growth and advancement of the industry.