Private Space Ecosystem in India
Source: Indian Express
GS II: Science & Technology
Overview
- Establishment of IN-SPACe (Indian National Space Promotion and Authorisation Centre, 2020):
- India’s space economy currently stands at $8.4 billion, accounting for 2–3% of the global space economy. It is expected to be $40–45 billion by 2030.
Why in the News?
PM Modi interacted with founders and CEOs of over 20 space start-ups and highlighted the potential of India’s private space ecosystem to attract global scientific and technological talent.
News in Brief
- India’s space economy currently stands at $8.4 billion, accounting for 2–3% of the global space economy. It is expected to be $40–45 billion by 2030.
- The Indian Space Policy 2023 led to the entry of private players to space-related activities in India.
- Companies such as Pixxel, Dhruva Space, Skyroot Aerospace, Agnikul Cosmos, and Bellatrix Aerospace have emerged as pioneers of a new space era.
India’s Emerging Private Space Ecosystem
- Establishment of IN-SPACe (Indian National Space Promotion and Authorisation Centre, 2020): Acts as a single-window regulator and facilitator for private companies, authorising and promoting their participation in space activities.
- Corporatisation via NewSpace India Limited (2019): It was set up as ISRO’s commercial arm to transfer technology, manufacture satellites/launch vehicles through industry, and provide commercial satellite services.
- Schemes to encourage the private sector have been implemented by IN-SPACe: Seed Fund Scheme, Pricing Support Policy, Mentorship Support, Design Lab for NGEs, Skill Development in Space Sector, ISRO facility utilisation support and technology transfer to non-governmental entities (NGEs).
- The ₹1,000 crore Venture Capital (VC) Fund under IN-SPACe aims to accelerate private participation in the space sector.
- IN-SPACe also introduced the ₹500 crore Technology Adoption Fund (TAF).
- Liberalised FDI Policy for Space: The revised policy permits up to 74% automatic FDI in satellite manufacturing and operations, 49% automatic FDI in launch vehicles and spaceports, and 100% automatic FDI in the manufacturing of satellite components and subsystems.
- SpaceTech Innovation Network (SpIN): SpIN is a one-of-its-kind public-private collaboration for start-ups and SMEs in the space industry.
What are the Challenges?
- Space technology is expensive and needs heavy investment. This kind of lucrative power is available only to selected rich corporates, which can lead to monopolisation of the sector.
- Building and operating space technology and infrastructure requires specialised technical expertise and resources.
- Protecting intellectual property rights (IPR) is crucial for incentivising innovation and investment in the space sector.
- Indian private companies in the space sector have to face stiff competition from the established players such as SpaceX, Blue Origin, etc. in the international market.
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