Daijiworld Media Network - New Delhi

New Delhi, Apr 18: Starlink’s plan to launch satellite communication services in India has encountered hurdles, with the government reportedly taking a cautious approach in clearing its foreign direct investment (FDI) proposal amid national security concerns, according to reports.

As per The Economic Times, the FDI application is currently on hold and may face rejection if the company fails to satisfactorily address queries raised by authorities.

Officials have reportedly flagged concerns related to cross-holding structures involving parent company SpaceX, along with certain technical parameters of the proposed network.

The company is also awaiting crucial security clearance, which will depend on whether Indian authorities are convinced that the service cannot be misused by anti-national or rogue elements.

Sources cited in the report indicated that there is growing sensitivity within the government regarding the potential risks satellite communication networks may pose during conflict situations or critical national developments.

Recent global incidents involving the alleged use of Starlink terminals in restricted regions have further heightened concerns among security agencies, prompting a more cautious evaluation in India.

While Starlink has already secured a global mobile personal communication by satellite services (GMPCS) licence and approval from the Indian National Space Promotion and Authorisation Centre (IN-SPACe), it cannot begin operations until spectrum allocation and final FDI and security approvals are granted.

India currently permits 100 per cent FDI in satellite communication services, though investments beyond 74 per cent require government approval. Companies are also required to comply with cross-holding norms and establish Indian subsidiaries under existing space policy guidelines.

Senior representatives from Starlink are expected to meet Commerce Ministry officials later this month or early May to further discuss the proposal.