Finance ministry notifies FDI in space sector; gives better access to capital, say startups
Foreign Direct Investment (FDI) in the Space sector under the Foreign Exchange Management Rules which will now enable Indian space startups working on capital-intensive space products to now access a global pool of capital.
The cabinet on February 21 had allowed 74% foreign direct investment (FDI) under automatic route for satellite manufacturing, upto 49% under automatic route for launch vehicles, and upto 100% under automatic route for manufacturing of components and systems.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIndian School of BusinessISB Product ManagementVisitFor creation of Spaceports for launching and receiving Spacecraft investment will be via government route beyond 49%.
These rules shall come into force on the date of their publication in the official gazette.
The investee entity shall be subject to sectoral guidelines as issued by the department of Space from time to time, the gazette notification said.
It provides much-needed regulatory clarity for foreign investments across all domains in India’s space sector, said Pawan Kumar Chandana, chief executive of Skyroot Aerospace. “For launch vehicles and satellite operation/data, 49% and 74% FDI respectively in the automatic route, and 100% FDI in the government route, will help boost investments, giving better access to capital and aligning
