Indian Satellite & Technology Pvt. Ltd. is an Indian start-up that has recently developed advanced Satellite technology. A major Aerospace company from Russia is interested in investing in it. Explain the Entry Route

Investments can be made by non-residents in the equity shares/fully, compulsorily and mandatorily convertible debentures/fully, compulsorily and mandatorily convertible preference shares of an Indian company, through the Automatic Route or the Government Route. Permissible FDI can be made under ""Automatic route" or "Government Route". Automatic Route: It means the entry route through which investment by a person resident outside India does not require the prior approval of the Reserve Bank of India or the Central Government. Government Route: It means the entry route through which investment by person resident outside India requires prior Government approval and foreign investment received under this route shall be in accordance with the conditions stipulated by the Government in its approval. Besides the entry conditions on foreign investment, the investment/investors are required to comply with all relevant Sectoral Cap, Sectoral Laws, Rules & Regulations made thereunder, Security conditions, and State/Local Laws/Regulations. Proposals for foreign investment under Government Route are considered by respective Administrative Ministry/Department. 100% FDI can be received in space sector. For receiving FDI in advanced Satellite technology, 74% investment can be received through automatic route. Investment beyond 74% can be received through Government approval [i.e. through Department of Space.