What Does the Govt’s Notification of 100% FDI in the Space Sector Mean? What is Elon Musk’s Indian Starlink Plan?

To encourage additional parties to invest in India, the Center has mandated a new Foreign Direct Investment (FDI) cap in the space industry under the Foreign Exchange Management Rules (FEMA). Elon Musk, the CEO of Starlink, visited India from April 21 to 22. This action follows his visit.

“The investee entity shall be subject to sectoral guidelines as issued by the Department of Space from time to time,” the statement said. The amended regulations will take effect on April 16.

In the FDI industry, the recently revised policy permits 100% FDI. Currently, 74% of FDI may go into satellite manufacture and operation, satellite data products, and the ground and user sectors. The government route will be applicable after this.

When building spaceports with automated paths for spacecraft launch and reception, up to 49% FDI is permitted. In addition, the government route applies to these kinds of operations.

It is permissible to manufacture systems and subsystems for satellites, the ground segment, and the user segment using 100% FDI under an automated route.

As long as FDI in space is still allowed via official channels, the government has loosened regulations for a number of subsectors and activities in accordance with the Indian Space Policy 2023. “The liberalized entry routes under the amended policy are aimed at attracting potential investors to invest in Indian companies in space,” the government said in a statement.

ELON MUSK: WHAT ARE HIS SPACE PLANS?
Musk is anticipated to reveal a number of things when he meets with Prime Minister Narendra Modi in India, including the launch of Starlink and $2–$3 billion in investments. Musk has submitted an application to launch Starcom services in India. Four thousand low-Earth orbit satellites make up the constellation of Starlink.

Additionally, Musk is anticipated to meet with tech businesses in New Delhi, such as Piersight, Dhruva Space, Satsure, and Skyroot Aerospace.

Musk is anticipated to talk with the company owners to find out more about their inventions and products, according to Moneycontrol. It is also anticipated that these firms will show the CEO of SpaceX demonstrations of their capabilities.

The Indian Space Promotion and Authorization Centre (IN-SPACe), the space regulator, is set to meet with space tech entrepreneurs on April 17. The Moneycontrol article also said that further information on the meeting with Musk is anticipated to be disclosed by the regulator at this meeting.

Through satellites, SpaceX’s Starlink project provides high-speed internet. SpaceX provides reasonably priced rocket launches. Musk has previously attempted to introduce Starlink for a GMPCS license in India in November 2022.

The term “satellite-manufacturing and operation” refers to the whole process of creating and supplying a satellite or payload, setting up the satellite systems, and managing in-orbit operations.

The term “Satellite Data Products” describes the acquisition, production, or distribution of satellite data used for remote sensing or earth observation.

The supply of satellite transmit or receive earth stations, such as gateways, teleports, earth observation data receive stations, satellite telemetry, tracking and command (TTC) stations, and satellite control centers (SCC), is referred to as the ground segment.

The provision of user ground terminals for satellite communication is referred to as the “user segment,” since it is beyond the purview of the ground segment.

Launch Vehicles and Associated Systems or sub-systems, are rocket-powered vehicles that are used to carry people or cargo outside the Earth’s atmosphere on a sub-orbital trajectory.

Establishing a spaceport entails building a base from which spacecraft are launched, complete with facilities that house equipment for space travel.

Manufacturing of systems and components includes producing and supplying mechanical, electrical, and electronic component systems or satellite subsystems.