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Government announces new FDI rules for space sector from April 16, 2024

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In Short:


The government has increased the FDI limits for satellite-related activities to attract more investors into the space sector. The new rules allow up to 100% FDI in the space sector, with different limits for various activities. Automatic approval is granted for up to 74% FDI in satellite manufacturing, while government approval is required beyond that. For launch vehicles and spaceports, up to 49% FDI is allowed automatically. The aim of these new rules is to encourage investment in Indian space companies and provide clarity and flexibility for foreign investors looking to participate in the space industry.

How Will the New FDI Rules Impact the NFAP Review and Update Committee’s Work?

The new FDI rules will require the dot committee review NFAP to carefully reassess its strategies. With the changes in regulations, the committee’s work may face significant implications. It’s crucial for the committee to adapt and update its approach to align with the latest FDI guidelines.

Government Raises FDI Limits for Satellite Activities

Hey there! Great news coming your way!

FDI Limits Enhanced for Satellite Activities

The **government** has passed a new regulation to improve Foreign Direct Investment (FDI) limits for satellite-related activities. This amendment falls under the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024.

Key Changes in FDI Policy for the Space Sector

From April 16, 2024, the latest rules have been put into action based on a decision by the Union Cabinet in February 2024. The Ministry of Finance’s notification highlights the key changes:

  • Liberalised entry routes for potential investors in **Indian** space companies.
  • Clarity on FDI in satellites, launch vehicles, associated systems, spaceports, and manufacturing of space-related components.

New FDI Limits in the Space Sector

Under the new rules, up to 100% FDI is now permitted in the space sector. Here are some specifics:

  • Up to 74% FDI allowed under automatic route for satellite activities.
  • Approval needed for FDI beyond 74% in certain satellite-related activities.
  • Up to 49% FDI under automatic route for launch vehicles & spaceports.
  • Government approval necessary beyond this limit.
  • 100% FDI under automatic route for manufacturing of satellite components.

These changes aim to attract more investments in the **Indian** space industry. Exciting times ahead!


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