The Finance Ministry has recently introduced new foreign direct investment (FDI) limits for satellite-related activities, marking a significant development for the sector. Under the Foreign Exchange Management Rules, investors are now permitted up to 100% FDI, with 74% falling under the automatic route for areas like satellite manufacturing, operations, ground segment, user segment, and satellite data products.
This announcement comes just ahead of Elon Musk's upcoming visit to India, where discussions with Indian space companies are anticipated during his visit on April 21 and 22. The Finance Ministry's notification, known as the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024, took effect on April 16, highlighting the government's efforts to attract foreign investment in the space industry. Additionally, the relaxation of FDI regulations in the space sector is seen as a move towards encouraging innovation and fostering global collaboration, according to experts in the field.