FDI In Space Industry— Procedures, Fees And Documents Required

100% FDI is allowed in space sectors through Automatic Route.

These includes:

• Manufacturing of components and systems
• Sub- systems for satellites
• Ground segment
• User segment

FDI is allowed up to 74% in space sectors through Government Route.

These includes:

• Satellite-manufacturing operations
• Data products

FDI is allowed up to 49% in space sectors through Government Route in the components which includes:

These includes:

• Launch vehicles
• Space sports and their corresponding systems

Many documents are required for FDI in the healthcare sector which are as follows:

• List of names, addresses, and identification proof of all foreign collaborators of the investor company/entity
• From both investor/investee entities- Certification of Incorporation and MoA
• Copy of joint venture agreement/ shareholders agreement/technology
• Copy of downstream intimation
• Copy of relevant past FIPB/SIA/RBI joint with the current proposal
• Copy of Downstream Intimation
• An affidavit to ensure all documents are relevant
• Valuation certification approved by a certified chartered accountant
• CS Certificate
• Declaration by the Authorized Representative of the Indian Company/LLP
• Pre and post-shareholding pattern in the Indian company
• Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation (if applicable)
• RBI approval on the amount of refund concerning the amount of the issue (if applicable)
• Valuation certificate
• Approval letter (if non-compliant with the guidelines – if applicable)
• Relevant RBI approvals for an issue of equity shares against funds payable to the foreign investor
• FIRC/ Debit statement
• Know Your Customer (KYC)

There are conditions tapping for the procedure of FDI approval which must be understood by investors.

Following are the key advantages for investors in commercial space sectors which are as follows:

1. Increasing Investment - With the increasing demand for satellites due to penetration of full-fledged innovation in satellite communication and geo-spatial data based services prompted additional players to venture in upstream and downstream sectors to serve space commercial commodities in so far in global economy.
2. Competitive advantage - In terms of drawing in foreign investment, Bengaluru is among the top three aerospace and defense hubs worldwide, and India is among the top nations in the world for both allied manufacturing and defense purchase.
   Additionally, under the direction of ISRO, more than 400 industrial companies, including major Indian conglomerates and SMEs, are currently involved in the field. Their goal is to create subsystems for space launch and base infrastructure.
3. Policy Support - 1. To increase mutual teaming of fresh startups space models with ISRO, IN-SPACEe (Indian National Space Promotion and Authorization Sector) commits to bridge innovation with private sector companies to encourage, supervise and authorize private sector undertakings that are coined for space activities. For this, 45 MoU has been signed for non-governmental entities in order to shake unbeatable ideas for space activities.
   2. It is now mandated that NewSpace India Limited (NSIL) serve as the exclusive public-sector aggregator for the supply and demand of space assets/services on a commercial basis. This includes-- providing satellite-based applications and manufacturing and launching PSLV and other launch vehicles with the assistance of private companies.
4. Increasing Investment - 1. Currently, the Indian space economy is estimated to be worth US$8.4 billion, or two to three percent of the world's space sector. The country's space industry is expected to reach US$44 billion by 2033, making up 8% of the total global space economy.
   2. (DPIIT) data shows that there were 189 space start-ups in India in 2023, a significant increase from the only one in 2014. Additionally, by 2023, investments in Indian space start-ups would total US$124.7 million.

1. Ignite Limitless Innovation - FDI (Foreign Direct Investment) pays off in massive revenues, granting the most favorable output and igniting limitless innovation through setting up collaboration between domestic and international borders.
2. Emergence of Commercial Space Sector - FDI in the space sector creates a condition between startups and government bodies to togetherly form the commercial space sector of India at the paramount of the rest of the companies existing in the global market.
3. Boost Potential - Building the sources of capital potential in the economy can uplift the vision of new drivers of space commercials, bring advent in technology and fosters an automatic economic growth.
4. Strengthening space exploration - Space exploration in FDI is the never ending expedition of space seekers, offering the continuous attributes of learning, researching, assembling knowledge and institutions to advance space exploration goals.

FDI in space allows to captivate real identification beyond the exosphere of the earth, an opportunity to hoist accomplishment on the alien land, a chance to promote in cosmos and the catalyst to mediate history to changing behavior of the planets, stars, galaxies and black holes. There are various other schemes, reforms and initiatives which are continuously monitored by the government bodies and regulatory authorities to enhance the performance of the medical startup revolution in India.

Several other factors to consider for investors while investing in space industries are listed below:

• Before involving huge investments, applicants must be prerequisites to check the kind of companies the government allows them to invest in. Because investment in the stock market is volatile and may not recover your loss, leading to unwriggled investment which will not recover at the time of redemption of company loss.
• Additionally, before application applicants need to inspect and ensure that all the requisite documents are submitted online without discovering any omissions and incorrect information within the documents. FDI is largely inspired to bring investors forth along with certain advantages that benefit sectors.

Investors must also need to check eligibility criteria for buying investment in India in sectoral companies.