India currently operates 55 space assets, including 18 communications satellites, nine navigation satellites, five scientific satellites, three weather satellites and 20 Earth observation satellites. Image credit: ANI, Reuters
In a significant move to boost India’s aerospace sector, Finance Minister Nirmala Sitharaman announced a significant allocation of INR 100 billion for space technology development in the Union Budget 2024. The fund will support more than 180 government-recognized space tech startups across India, stimulating innovation and growth in the space industry.
This announcement comes on the heels of the Economic Survey 2023-24, which highlighted the impressive progress India has made in the space sector in recent years. The Survey details advancements in rockets, satellites, spacecraft and ground infrastructure, highlighting the important role of the space sector in India’s technological and economic landscape.
India currently operates 55 space assets, including 18 communications satellites, 9 navigation satellites, 5 scientific satellites, 3 weather satellites and 20 Earth observation satellites. These assets underpin India’s growing capabilities in space exploration and utilisation.
Finance Minister Sitharaman has proposed to set up a Rs 1000 crore venture capital fund, aimed at stimulating further advancements in space technology. The fund is expected to encourage private sector participation in space exploration and commercialization, thus enhancing India’s position in the global space industry. By providing financial support and incentives, the government aims to accelerate the development of cutting-edge space technologies and foster a strong ecosystem for space startups.
Srinath Ravichandran, co-founder and CEO, Agnikul Cosmos, said: “This is great news for all of us in the sector. This will enable more large scale companies to emerge from the Indian space startup ecosystem. It also signals continued strong government support for India’s vision of a larger share of the global space economy.”
Lt. Gen. AK Bhatt (retd), Secretary General, Indian Space Association (ISpA), said, “The Union Budget’s vision of growing India’s space economy five-fold over the next decade demonstrates the government’s strong commitment to the sector. We have previously advocated for enhanced financial incentives to support the burgeoning space startups in the country.”
“The announcement of a Rs 1000 crore venture capital fund is a step towards addressing the fundraising challenges faced by start-ups in this capital-intensive sector. Further, we are hopeful that the proposal to set up 12 industrial parks across India will also include the space sector as this will provide a major boost to the space and satellite manufacturing industry, which has been calling for the establishment of space parks for long. These steps are crucial for the growth and development of India’s space ecosystem,” he added.
New Space India Limited (NSIL) has already established itself in the global commercial launch services market, with the successful execution of a contract to launch 72 OneWeb satellites into low Earth orbit through the LVM3 mission, establishing LVM3 as a reliable launch vehicle and underscoring India’s growing presence in the international space arena.
The Indian National Space Promotion and Authorisation Centre (IN-SPACe) has also played a key role in promoting and authorising space activities. As of January 1, IN-SPACe has received 440 applications from over 300 Indian entities. These applications cover a range of activities including authorisation, assistance, facility support and consultancy, technology transfer and facility utilisation.
In addition, 51 Memorandums of Understanding (MoUs) and 34 Joint Project Implementation Plans were signed with various non-governmental organizations. These agreements aim to expand the support required for the implementation of space activities and further strengthen cooperation between the government and the private sector.
The allocation for space technology in Budget 2024 reflects the government’s commitment to enhancing India’s space capabilities and fostering innovation in the aerospace sector. With the support of this fund, India’s aerospace industry is poised to achieve significant growth and position the country as a major player in the global space economy. This strategic investment will not only drive technological advancements but also create new opportunities for start-ups and private companies, contributing to India’s economic and technological development.
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