India’s Space Economy to Increase Five-fold

Syllabus: GS3/Space

Context

As per the union minister of state for Science & Technology India’s space economy is set to grow fivefold to $44 billion in the next decade, with private investments already crossing ₹1,000 crore.

India’s space economy stands at $8 billion contributing 2-3% of the global space economy and this is expected to rise to 8% by 2030 and further to 15% by the year 2047.
With over 400 private space companies, India ranks fifth globally in no. of space companies.

The number of space startups in India increased to nearly 200 in 2024 from just one in 2022, in just about two years.
The funding received by these start-ups reached a total of $124.7 Mn in 2023 from $67.2 Mn in 2021.
The Skyroot, have launched India’s first privately built rocket, Vikram-S, into space, with plans to revolutionize satellite launches.

National Space Promotion and Authorisation Centre (IN-SPACe): It is an autonomous and single window nodal agency in the Department of Space for the promotion, encouragement and regulation of space activities of both government and private entities.
NewSpace India Ltd (NSIL): It is mandated to transfer the matured technologies developed by the ISRO to Indian industries.
- All of them are under the purview of the Ministry of Defence.

Cost Reduction: Profit motive drives private companies to reduce costs in space missions and satellite launches.
Competition & Innovation: Privatization introduces competition, enhancing efficiency and fostering innovation.
Commercialization: Private players enable space applications in sectors like agriculture, disaster management, urban planning, navigation, and communication.
Autonomy: Greater decision-making autonomy allows private companies to take on new projects more swiftly.
Employment & Self-reliance: Privatization generates jobs, supports modern technology adoption, and helps make the space sector self-reliant.

High Investment Costs: Space technology requires heavy investment, potentially leading to monopolization by wealthy corporations.
Specialized Expertise: Building and operating space tech demands specialized technical skills and resources.
Protecting intellectual property rights (IPR): Safeguarding intellectual property rights is essential to encourage innovation and investment.
International Competition: Indian private space companies face strong competition from established players like SpaceX and Blue Origin globally.

Space Sector Reforms (2020): Government allowed private sector participation, defining roles of IN-SPACe, ISRO, and NSIL.
Space Vision 2047: Aims for Bharatiya Antariksh Station (BAS) by 2035 and an Indian Moon landing by 2040.
- Gaganyaan follow-on missions & BAS first module by 2028.
- Next Generation Satellite Launch Vehicle (NGLV) by 2032.
- Chandrayaan-4 by 2027, to collect moon samples and demonstrate return technology.
- Venus Orbiter Mission (VOM) by 2028, to study Venus.
Indian Space Policy, 2023: Ensures level playing field for Non-Government Entities (NGEs) in space activities.
Venture Capital Fund: Rs. 1000 crore fund for space startups under IN-SPACe over the next 5 years.
SpaceTech Innovation Network (SpIN): SpIN is a one-of-its-kind public-private collaboration for start-ups and SMEs in the space industry.
Under the amended FDI policy, 100% FDI is allowed in the space sector.

Private entities are now actively involved in crucial aspects of research, manufacturing, and fabrication of rockets and satellites, fostering a vibrant ecosystem of innovation. It is expected to integrate Indian companies into global value chains.
With this, companies will be able to set up their manufacturing facilities within the country duly encouraging ‘Make In India (MII)’ and ‘Atmanirbhar Bharat’ initiatives of the Government.

Source: ET

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