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Private sector in Indian space tech: Progress, challenges, and future

2 min read

Space Sector Developments

Astronauts Sunita Williams and Butch Wilmore have completed a mission, highlighting the growing influence of the private sector, such as SpaceX and Boeing, in space exploration.

India's Space Aspirations

India is gearing up for significant advancements in its space sector:

  • Plans for the ‘Bharatiya Antriksh Station’ by 2035 and an Indian lunar landing by 2040.
  • India's crewed orbital spacecraft is scheduled for launch in 2026.

Space Sector Dynamics

The space industry is categorized into:

  • Upstream Segment: Involves development, testing, and launching of space assets.
  • Downstream Segment: Includes applications and services utilizing satellites.

India currently has around 250 startups involved in both segments.

Government Initiatives

Key policies to boost the Indian space sector include:

  • New Space Policy 2023
  • FDI Policy 2024
  • Indian Telecommunication Act 2023
  • Geospatial Data Policy

These aim to increase the space sector's worth from $9 billion to $44 billion.

Foreign Direct Investment (FDI) Policies

The government permits:

  • 100% FDI in satellite components and systems.
  • Up to 74% in satellite manufacturing and operations.
  • 49% in launch vehicles and spaceports.

A ₹1,000-crore venture capital fund is available to encourage private sector participation.

Challenges and Opportunities

S Somanath stresses the need for demand creation to attract big investments. The downstream sector currently dominates the global space economy, contributing 80-90% of its $470 billion value. In India, downstream services also account for 80% of the $8.4 billion space economy.

Key Startups and Innovations

Prominent Indian startups include:

  • Skyroot Aerospace: First Indian private company to launch a rocket.
  • Agnikul Cosmos: Launched its Agnibaan rocket from a private launchpad.
  • Others like Manastu Space, Digantara, OrbitAID, InspeCity, and Forge Innovation & Ventures are contributing to advancements in propulsion, space debris management, and autonomous operations.

Public-Private Partnerships (PPP) and Collaboration

Significant PPP initiatives include:

  • NSIL's contract with HAL-L&T for PSLV-XL production.
  • LVM3 PPP Model and IN-SPACe’s Build-Own-Operate model for Earth Observation Satellites.

These efforts aim to scale up commercial capabilities and foster international collaboration.

  • Tags :
  • IN-SPACe
  • Public-Private Partnerships (PPP)
  • Bharatiya Antriksh Station
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