India Modifies FEMA Rules to Align with Revised FDI Norms

The Finance Ministry of India has revised the Foreign Exchange Management Act (FEMA) rules to harmonise with the updated Foreign Direct Investment (FDI) regulations in the space sector. As per the new FDI norms, the government has permitted up to 74% FDI under the automatic route for satellite manufacturing and operation, satellite data products, as well as ground and user segments.

The move aims to attract more foreign investments and facilitate the growth of the space industry in India by offering a more conducive regulatory environment.

The Finance Ministry’s adjustment of the FEMA rules comes in response to the modified FDI guidelines announced for the space sector.

The updated FDI norms are expected to spur innovation, enhance technological capabilities, and foster collaboration between domestic and international players in the satellite manufacturing and operation, satellite data products, and ground and user segments.

This proactive approach by the Finance Ministry signifies the government’s commitment to fostering a thriving space ecosystem, promoting entrepreneurship, and positioning India as a global hub for space-related activities.