New Delhi: The Indian government has removed the mandatory 20% local sourcing requirement for satellite communication (satcom) companies, marking an important policy change aimed at encouraging greater investment in India’s fast-growing space and telecom sectors.
While the local sourcing rule has been withdrawn, the government has made it clear that strict national security checks and regulatory approvals will continue to remain in place for all satellite communication service providers operating in the country.
Industry experts believe the policy change could make India a more attractive destination for global satellite companies looking to expand broadband and communication services. The move is expected to encourage faster deployment of satellite internet infrastructure, especially in rural and remote regions where traditional broadband networks remain limited.
Satellite communication has become increasingly important for connecting difficult-to-reach areas, supporting disaster management, improving defence communications, and expanding digital access across the country.
The revised policy may also benefit companies planning to launch satellite broadband services in India. By reducing mandatory sourcing requirements, firms may be able to speed up network deployment while investing more in technology and infrastructure.
However, officials have stressed that security remains a top priority. Companies will still need to meet strict licensing conditions, data security standards, and government regulations before offering commercial services.
Industry observers say the new policy creates a better balance between attracting foreign investment and protecting national interests. It also aligns India’s regulatory framework with global practices followed in several advanced satellite communication markets.
The satellite communication industry is expected to grow rapidly over the next decade as demand increases for high-speed internet, connected devices, remote education, telemedicine, and enterprise communication services.
