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ARTICLE · 30 JULY 2024

FEMA (Non-Debt Instruments) (Third Amendment) Rules, 2024

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The Finance Ministry has introduced the third amendment to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2024, which sets the Foreign Direct Investment (FDI) limits for various activities related to satellites.

IndiaFinance and Banking
Jinal Shah
Jinal Shah
Rugwed Dhage
Rugwed Dhage
Smrithi Balasubramanian
Smrithi Balasubramanian
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The Finance Ministry has introduced the third amendment to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2024, which sets the Foreign Direct Investment (FDI) limits for various activities related to satellites.

According to the notification, investee entities must comply with sectoral guidelines issued by the Department of Space.

Under the revised FDI policy, the space sector now allows 100% FDI. Specifically, satellite manufacturing and operation, satellite data products, and ground segment and user segment activities can receive up to 74%FDI via the automatic route. Beyond this threshold, FDI will require government approval.

Additionally, 100% FDI under the automatic route is now permitted for manufacturing components and systems/sub-systems for satellites, ground segment, and user segment.

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