The Union finance ministry notified amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 to operationalise the new foreign direct investment (FDI) limits for satellite-related activities.

National

The Union finance ministry notified amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 to operationalise the new foreign direct investment (FDI) limits for satellite-related activities. The notification follows a nod from the Union Cabinet on February 21 that approved changes to FDI policy for space sector, allowing up to 100 percent foreign investment under the automatic route for certain activities. These include manufacturing of components and systems and sub-systems for satellites. The notification that will come into effect from 16 April 2024 has been issued just a few days away from the SpaceX CEO Musk's likely meeting with India's burgeoning space tech startups during his first-ever visit to the country on April 22. Up to 100 percent FDI is now allowed under the automatic route for manufacturing of components and systems or sub-systems for satellites, ground segment and user segment, Up to 74 percent FDI is now permitted under the automatic route for satellite manufacturing and operation, satellite data products and Ground Segment and User Segment. Up to 49 percent will be permitted under the automatic route for launch vehicles and associated systems or sub-systems and creation of spaceports for launching and receiving spacecraft.


     

     

     

 

     


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