In a significant move to boost India’s burgeoning space industry, Finance Minister Nirmala Sitharaman announced a Rs 1,000 crore fund dedicated to space technology development in her Union Budget 2024 speech on Tuesday.
Promoting space technology startups
The newly announced fund in the Union Budget 2024 will provide significant support to over 180 space technology startups endorsed by the Government of India with an aim to foster innovation and development in the space sector.
Speaking about the fund, Finance Minister Sitharaman said, “The success of Chandrayaan-3 has demonstrated the potential of India’s space technology. This Rs 1,000 crore fund will not only support existing start-ups but also inspire new companies to take bold steps in space exploration and technology.”
Economic Survey 2023-24 Highlights
The announcement came in the wake of the Economic Survey for 2023-24 tabled in Parliament by Finance Minister Sitharaman on Monday, which highlighted the impressive progress made in India’s space industry in recent years, particularly in the development of rockets, satellites and ground infrastructure.
According to the study, India currently operates 55 space assets, including 18 communications satellites, nine navigation satellites, five scientific satellites, three weather satellites and 20 Earth observation satellites. These assets play vital roles in a variety of applications, ranging from communications and navigation to weather forecasting and scientific research.
New Space India Limited’s track record
The Economic Survey also highlighted the performance of New Space India Limited (NSIL), a public sector enterprise under the Indian Department of Space. NSIL has successfully executed the contract to launch 72 OneWeb satellites into low Earth orbit through the LVM3, M2 and M3 missions. These missions have established LVM3 as a reliable launch vehicle in the global commercial launch services market.
Roadmap for the future
The Rs 1,000 crore fund announced in the Union Budget 2024 is expected to give a major boost to India’s space technology sector, as the government aims to create an ecosystem that fosters cutting-edge research and development by supporting start-ups and encouraging innovation.
Outlining India’s broader vision for its space sector, Sitharaman said, “Our aim is to transform India into a global leader in space technology by 2047 as part of our ‘Viksit Bharat’ vision. This fund is a step towards achieving that vision and will enable Indian startups to grow and contribute to space missions.”
Challenges and opportunities
Despite the optimistic outlook, the Economic Survey 2023-24 also highlighted several challenges facing India’s space sector. The report noted that India’s growth trajectory will depend on global developments and geopolitical tensions, which could affect the country’s ability to export goods and services.
Moreover, the rise of artificial intelligence (AI) poses challenges for employment, especially in the services sector. The impact of AI on the cost competitiveness of countries exporting digital services is a concern that needs to be addressed as part of a broader strategy for economic growth.
Conclusion
The announcement of a Rs 1,000 crore fund for space technology development in the Union Budget 2024 marks a significant milestone for India’s space sector. With the support of the fund, over 180 startups will have the opportunity to innovate and contribute to the country’s space mission. The challenges ahead are real, but so are the opportunities. With the right support and resources, India’s space sector can have a bright future.
