Finance Ministry notifies a new FDI limits for satellite related activities under FEMA

Current Context: The Finance Ministry has indeed notified new Foreign Direct Investment (FDI) limits for various satellite-related activities under the Foreign Exchange Management (Non-Debt Instruments) Rules.

• Here are the key points:
• The new FDI limits for satellite activities became effective on April 16, 2024.
• The investee entity shall be subject to sectoral guidelines as issued by the Department of Space from time to time.
• Under the amended FDI policy, 100% FDI is allowed in the space sector.
• Satellite manufacturing & operation, satellite data products, and ground segment & user segment can get FDI up to 74% under the automatic route. 
• Beyond 74%, government route will be applicable.
• The creation of spaceports for launching and receiving spacecraft can get FDI through automatic routes up to 49%. 
• Beyond 49%, these activities are under the government route.
• 100% FDI under the automatic route has now been permitted to manufacture components and systems/sub-systems for satellites, ground segment, and user segment.
• This move is aimed at attracting more investors to the Indian space industry.
• The liberalized entry routes under the amended policy are expected to attract potential investors to invest in Indian companies in space.

Question:

Q.1 For satellite manufacturing & operation, satellite data products, and ground segment & user segment, up to what percentage can FDI be obtained under the automatic route?
a. 49%
b. 74%
c. 100%
d. 50%