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 share in Space Industry

• 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.

Private players in Space Industry

• 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.

Regulation of the Private sector in the Space industry in India

• 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.

Significance of privatization of space sector

• 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.

Challenges

• 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.

Steps Taken by Government

• 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.

Way Ahead

• 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