India Commercial Space Sector
India continues to make changes in the commercial space sector following reforms announced in 2020. In May 2020, the Indian government announced access for the Indian private sector to its space activities and programs to develop and enhance private sector participation in the country’s space programs and to expand its share of the global market. This reflected a major shift in the country’s space policy and included access to the Indian Space Research Organization’s (ISRO) facilities and a focus on future space travel. In April 2023, India released The Indian Space Policy that provided a regulatory framework for space activities in the country. In February 2024, more changes followed to relax restrictions for foreign direct investment (FDI) or ownership approvals for the emerging private space industry in the country. Easing of FDI norms are expected to lead to greater collaboration by the nascent Indian space private sector with foreign companies potentially opening up opportunities for U.S. partner companies.
The new Indian FDI policy for the space sector divides the space industry into three segments with varying levels of automatically permitted investments between 49 and 100%. Higher percentages of foreign ownership are allowed on a case-by-case basis. The new policy allows for automatic approval for up to 74% of foreign ownership for satellite manufacturing and related data and ground systems, and up to 49 % for companies manufacturing and developing launch vehicles, spaceports, spacecraft, and their associated systems and sub-systems. Beyond these limits, higher percentage of foreign ownership up to 100% is allowed on a case-by-case basis. Foreign investment in companies manufacturing components, systems, and sub-systems for satellites and ground systems is automatically permitted up to 100%.
The U.S-India commercial space relationship continues to grow under the frameworks of the U.S.-India Civil Space Joint Working Group (CSJWG) and the Initiative on Critical and Emerging Technology (iCET), a technology initiative announced in 2022. Under the CSJWG, a new sub-working group was formed last year focusing on “Space Commerce” and is co-led by the U.S. Department of Commerce’s Office of Space Commerce and by India’s Department of Space/ISRO to expand collaborative opportunities for U.S. and India space companies. According to the Indian National Space Promotion and Authorization Center (IN-SPACe), India’s commercial space ecosystem today consists of more than 450 micro, small, and medium-sized enterprises, over 50 large companies, and around 200 start-ups.
U.S. companies interested in the Indian space sector can connect with the U.S. Commercial Service team in India for more information on upcoming events and activities under these initiatives to showcase their technologies and meet with potential Indian partners. U.S. companies can also refer to updated guidelines on export controls and license exceptions through online tools at: https://www.bis.gov/articles/license-exceptions
The U.S. Commercial Service in India offers customized solutions to help U.S. businesses in the Indian market. For more information regarding upcoming events and opportunities in this sector, U.S. firms can contact the U.S. Commercial Service India team for commercial space or reach out to your local U.S. office in your state.