The Government of India has reviewed the extant Foreign Direct Investment (FDI) Policy on Space sector. Accordingly, the following amendments have been made under Para 5.2.12 of the Consolidated FDI Policy Circular of 2020, as amended from time to time (FDI Policy):

5.2.12 SPACE SECTOR

Sector/Activity	Sectoral Cap	Entry Route
5.2.12.1 (1) Satellites-Manufacturing & Operation	100%	Up to 74%: Automatic   Beyond 74%: Government route
(2) Satellite Data Products
(3) Ground Segment & User Segment
5.2.12.2 (1) Launch Vehicles and associated systems or subsystems	100%	Up to 49%: Automatic   Beyond 49%: Government route
(2) Creation   of  Spaceports  for launching and receiving Spacecraft
5.2.12.3 Manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment	100%	Up to 100%: Automatic

5.2.12.4 The investee entity shall be subject to sectoral guidelines as issued by 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:

(a) 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.

(b) 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 is 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 as launch site) can be regarded as the base from which spacecraft are launched, and 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.

The above decision will take effect from the date of FEMA notification.

FDI caps in space sector revised; automatic approvals limited while higher equity inflows require government route approval. Revisions calibrate equity ceilings and entry routes across space activities: satellite manufacturing and operation, satellite data products, and ground and user segment activities permit full foreign ownership with automatic approval only up to a stated threshold and government route beyond that; launch vehicles and spaceport creation likewise allow full ownership with automatic approval limited to a lower threshold and government approval beyond; manufacturing of components and subsystems qualifies for full foreign ownership under the automatic route. Investee entities must follow Department of Space guidelines; key sector definitions are specified.