Starlink’s India Launch and the New Era of Satellite Policy in India
INTRODUCTION
India’s space sector Foreign Direct Investment (“FDI”) policy has undergone a significant transformation from its previously restrictive approach driven by national security concerns. Previously, foreign investment in “satellites — establishment and operation” was permitted upto 100%, but only through the government approval route and subject to the guidelines issued by the Indian Space Research Organisation (“ISRO”), Department of Space.
POLICY LIBERALIZATION
Press Note 1, dated 4 March 2024, introduced a significant overhaul of India’s FDI policy in the space sector by liberalizing investment thresholds across several sub-sectors.1 These reforms took effect on 16 April 2024, following the notification of the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024 by the RBI.
Under the revised framework, the entry routes for FDI in various space-related activities are as follows:
- Up to 74% under the automatic route:
- Satellite manufacturing and operations
- Satellite data products
- Ground segment and user segment
- Investments beyond 74% in these areas require government approval.
- Up to 49% under the automatic route:
- Launch vehicles and associated systems or subsystems
- Establishment of spaceports for launching and receiving spacecraft
- Investments exceeding 49% in these categories fall under the government approval route.
- Up to 100% under the automatic route:
- Manufacturing of components and systems/subsystems for satellites, ground segments, and user segments.
STARLINK’S ENTRY IN INDIA
Starlink, a satellite internet service developed by SpaceX, the aerospace company founded by Elon Musk, isone of the early major foreign satcom entrants under the liberalised 2024 FDI framework. It has initiated its India entry through its wholly owned subsidiary, Starlink Satellite Communications Private Limited, after securing key regulatory approvals. These include a five-year space-segment authorisation from Indian National Space Promotion and Authorisation Centre (“IN-SPACe”) for its Gen-1 low earth orbit constellation under the Indian Space Policy, 20232 and the IN-SPACe Norms, Guidelines and Procedures, 2024 (collectively “IN-SPACe NGP, 2024”).3 In June 2025, Starlink also secured a unified licence from the Department of Telecommunications (“DoT”) to provide Global Mobile Personal Communication by Satellite (“GMPCS”) services in India. Starlink is expected to conduct trials using provisional spectrum, with full commercial launch remaining subject to final spectrum assignment and the applicable fee framework.
NEW REGIME
Concurrently, India’s satellite communications regime is undergoing a significant regulatory transition under the Telecommunications Act, 2023 (“Telecommunications Act”). Telecom Regulatory Authority of India (“TRAI”) has issued recommendations on assignment of spectrum for satellite-based service. In parallel, the DoT has introduced the draft Telecommunications (Authorisation for Telecommunication Network) Rules, 2025, which seek to replace the long-standing licensing framework under the Telegraph Act 1885, with a unified authorisation regime, including categories such as Satellite Earth Station Gateway and Data Centre and Internet Provider.
Notwithstanding this shift, existing GMPCS operators such as Starlink will continue to operate under the legacy Unified Licence framework, whereby, their existing licences remain valid, with no re- required for re- application as provided under the provisions of the Telecommunications Act. Overall, this evolving regulatory framework reflects India’s commitment to modernise satellite regulation while operational continuity for current licensees during the transition.
The information contained in this document is not legal advice or legal opinion. The contents recorded in the said document are for informational purposes only and should not be used for commercial purposes. Acuity Law LLP disclaims all liability to any person for any loss or damage caused by errors or omissions, whether arising from negligence, accident, or any other cause.
- Press Note by Department for Promotion of Industry and Internal Trade on Review of FDI Policy in Space Sector, dated 4 March 2024 (can be accessed at: https://www.dpiit.gov.in/static/uploads/2025/07/53ca8531250d55c237a49ab951567e97.pdf) ↩︎
- Indian Space Policy by Indian Space Research Organization dated 2023(can be accessed at: https://www.isro.gov.in/media_isro/pdf/IndianSpacePolicy2023.pdf) ↩︎
- Guidelines by Indian National Space Promotion and Authorization Centre, Department of Space, Government of India, dated May 2024 (can be accessed at: https://www.inspace.gov.in/sys_attachment.do?sys_id=5d532e37877102503b0f0d060cbb35cf) ↩︎
