Starlink's India Expansion Delayed by Security and FDI Concerns

• •Starlink's FDI proposal in India is on hold due to national security concerns.
• •The Indian government requires explicit approval for investments over 74% in satellite services.
• •Starlink must address ownership and operational control issues to proceed with its application.

Starlink's proposal to launch satellite communication services in India is currently stalled due to national security concerns regarding its foreign direct investment (FDI) application. The Indian government is scrutinizing the proposal, particularly the ownership structures linked to parent company SpaceX, which raises potential risks of misuse during critical national events. The FDI application is on hold and may face rejection if Starlink does not adequately address the authorities' queries. India allows 100% FDI in satellite services, but investments exceeding 74% require explicit government approval. Starlink has received a global mobile personal communication by satellite services (GMPCS) license and approval from the Indian National Space Promotion and Authorization Centre (IN-SPACe), but still awaits spectrum allocation and final security clearances. The government's increased caution is influenced by reports of Starlink terminals being used in sensitive regions, which has heightened concerns about the potential misuse of satellite communications. Company representatives are scheduled to meet with commerce ministry officials in early May to discuss the proposal further.