Liberalization Of FDI In Satellite And Space Sector

The Government of India ("GOI"), in a bid to promote private sector activity and include young entrepreneurs in upcoming technological changes, specifically in the space sector, had, in 2020, introduced various reforms, such as: (a) enabling and promoting non-governmental entities ("NGEs") to carry out independent space activities; (b) opening up ISRO infrastructure and space facilities for use by the private industry; and (c) demand-driven approach for utilization of space assets such as satellites and launch capacity.

Under the Foreign Direct Investment Policy of 2020 ("2020 FDI Policy"), the prevailing position was that 100% foreign direct investment ("FDI") was allowed for the establishment and operations of Satellites (subject to sectoral guidelines of the Department of Space/ISRO) through the government route.