/ Foreign Clients · Space FDI · Updated 2026-10-15

India space sector FDI, 100% automatic for most activities post 2024.

February 2024 FDI reform opened India's space sector dramatically. 100% FDI via automatic route for satellite components, ground segment, user segment. 74% automatic (balance via approval route) for satellite launch vehicles + sub-systems. 49% automatic (balance via approval) for satellite operations. Combined with SpaceCom Policy 2023 + IN-SPACe authorisation framework, foreign space / satellite companies can now establish Indian presence relatively easily. Here's the complete 2026 framework.

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Written by CA Durgesh Chavda

Chartered Accountant (ICAI) · Founder, Bharat Quantum Prospera · US incorporation, India-US DTAA, FEMA ODI, NRI taxation, cross-border structuring · LinkedIn

/ The February 2024 FDI reform

What changed.

Previous regime (pre-Feb 2024): all FDI in space sector required prior government approval. Severely constrained foreign participation.

New regime (post Feb 2024 Cabinet decision):

Sub-activity 1: Satellites - Manufacturing + Operations
— Up to 74% FDI: automatic route.
— Beyond 74%: Government approval route.
Sub-activity 2: Launch Vehicles + Associated Systems / Sub-systems + Creation of Spaceports
— Up to 49% FDI: automatic route.
— Beyond 49%: Government approval route.
Sub-activity 3: Manufacturing of components + sub-systems for satellites, ground segment + user segment
— Up to 100% FDI: automatic route.

This is a transformational shift. The 100% automatic route for components + ground segment + user segment opens the entire space-tech ecosystem to foreign capital without any government approval delay.

/ SpaceCom Policy 2023 - the enabling framework

The regulatory architecture.

Indian Space Policy 2023: declared in April 2023, replaced ad-hoc space regulations. Objective: enhance private sector participation in Indian space activities.
Players recognised: ISRO (strategic + national missions), NSIL (New Space India Limited, commercial arm), IN-SPACe (regulator / enabler for private sector), and now Non-Governmental Entities (NGEs) — private companies, foreign-owned Indian companies.
IN-SPACe (Indian National Space Promotion and Authorization Centre): autonomous body under Department of Space, authorises + licenses private sector space activity.
Scope of activity: launch services, satellite manufacturing + operation, remote sensing, satellite communication (Satcom), navigation, space transportation, in-space transportation + servicing, ground stations, remote sensing data analytics.
NGE registration: with IN-SPACe for private space activities.

/ Pathways for foreign space company into India

Entry structures.

Route 1: 100% WOS for components / ground segment / user segment

Fastest route. Automatic FDI route — no prior approval.
Suitable for: satellite component manufacturing (sensors, electronics, propulsion), ground stations, remote sensing data analytics, Satcom user terminals, ground segment software.
Standard WOS incorporation + Section 115BAB for new manufacturing.
See our WOS guide.

Route 2: 74% FDI JV with Indian partner for satellite manufacturing + operations

Up to 74% foreign ownership automatic; 26% Indian partner.
Beyond 74% requires Government approval.
Suitable for: full satellite manufacturing (not just components), satellite operations (ownership + management of orbital assets).
Indian partner typically brings regulatory relationships + local supply chain.

Route 3: 49% FDI JV for launch vehicles + spaceports

Up to 49% automatic; majority Indian (strategic sector).
Beyond 49% requires Government approval + strategic sector review.
Suitable for: rocket / launch vehicle development + manufacturing + spaceport operations.

In addition to FDI structuring, foreign company must obtain IN-SPACe authorisation for actual space activity.

/ IN-SPACe authorisation workflow

The licensing layer.

NGE registration with IN-SPACe (one-time); establishes identity of foreign-owned Indian entity.
Activity-specific authorisation application: launch vehicle authorisation, satellite authorisation, ground station authorisation, remote sensing authorisation, Satcom authorisation, in-space activity authorisation.
Documentation: technical specifications, safety assessment, debris mitigation plan, orbital allocation (if applicable), environmental assessment, financial capability.
IN-SPACe review: technical + legal + safety + strategic review; may involve DoS / ISRO co-ordination.
Authorisation grant: 6-18 months typical. Specifies activity scope, conditions, duration.
Ongoing compliance: periodic reporting, operational safety reviews, debris mitigation evidence, insurance maintenance.

Insurance: third-party liability for launch + operations typically mandatory under IN-SPACe conditions. Specific insurance capacity requirements.

Last updated: 2026-10-15.

/ Ready when you are

Foreign space / satellite / ground-station company evaluating India?

100% automatic FDI for most activities post Feb 2024. IN-SPACe authorisation + Section 115BAB + state incentives. BQP end-to-end: structure + registration + authorisation + ongoing compliance.

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FAQ

Common questions, answered.

What changed in India's space FDI policy in February 2024?

Dramatic liberalisation: 100% FDI via automatic route for satellite components, ground segment, user segment (previously all required Government approval). 74% automatic for satellite manufacturing + operations; 49% automatic for launch vehicles + spaceports. Beyond these thresholds, Government approval required. First major space FDI liberalisation in Indian history. Combined with SpaceCom Policy 2023 + IN-SPACe authorisation framework, foreign space-tech participation now substantially enabled.

Can a foreign satellite company own 100% of an Indian satellite subsidiary?

Component / ground segment / user segment manufacturing: yes, 100% FDI automatic. Satellite manufacturing + operations: up to 74% automatic (26% Indian partner required or beyond 74% needs Government approval). Launch vehicles + spaceports: up to 49% automatic (majority Indian partner required). Decide structure based on actual scope of activity.

What is IN-SPACe and why does it matter?

Indian National Space Promotion and Authorization Centre - autonomous body under Department of Space, established 2020. Authorises + licenses private sector space activity in India. Any foreign-owned Indian space company must register with IN-SPACe as NGE (Non-Governmental Entity) and obtain activity-specific authorisation for launch, satellite operations, ground station, remote sensing, Satcom etc. Separate from (and in addition to) FDI approval.

How does India's space FDI liberalisation compare globally?

India now more open than many major space nations in several categories. US, China, Russia maintain strategic restrictions on foreign satellite + launch vehicle ownership. EU + UK + Australia more open but with security review for strategic activities. India's 100% automatic route for components / ground segment / user segment is among the most liberal globally in those categories.

Can foreign space company combine PLI benefits with space FDI?

Partially - no direct space-sector PLI yet, but satellite components + ground stations + user segment components may qualify under adjacent sector PLIs: Electronics PLI (satellite electronics), Semiconductor Mission (chip-level), Drone PLI (certain satellite tech). Standard incentive stack: Section 115BAB 15% corporate tax + state-level incentives + customs optimisation available regardless of PLI.

Does BQP handle India entry for foreign space / satellite companies?

Yes - specialised foreign-space-sector advisory. FDI structuring (100% / 74% / 49% route selection), Indian subsidiary setup (WOS or JV), Section 115BAB opt-in, IN-SPACe NGE registration + activity authorisation application, insurance capacity structuring, state-level incentive co-ordination (Gujarat, Tamil Nadu, Karnataka proactive), ongoing compliance. Co-ordinated with Indian space-regulatory counsel. WhatsApp +91 78018 87130.