Space Technology, over the years, has seen tremendous growth in multitude than originally envisaged. According to ISRO, many Non-Government-Private-Entities (NGPEs) in India have started engaging in space activities that are contributing to the growth trajectory with huge commercial potential. ‘Space Economy, Space Collaboration and Space Diplomacy’ are going to be the founding stone of the foreseeable future of the world economy and technology. Referring to the space economy while inaugurating North India’s first-ever space centre in Jammu, Union Minister of State for Science & Technology, Dr Jitendra Singh mentioned that India is already receiving revenue worth millions of Euros and US Dollars through the launching of foreign satellites.
The Global Space Sector is thriving. Over 65 countries have operated at least one satellite. Political and economic capital being invested in the space environment by governments and commercial entities is at record levels. Global Space Economy comprises the space industry’s core activities in-space manufacturing and in satellite operations, including others. The growing public-private factors contribute to the Space economy by providing space-related outputs, space derived products and services and the scientific knowledge arising from space research. The main segments of the space economy include manufacturing, services from satellite operators and consumer services.
At present India accounts for only about 2% of the space economy. With policy interventions in the right direction and public-private partnerships in the Indian space sector, India can capture a larger share of the global space economy. The budget allocation to these sectors is growing year after year. This year, the Department of Space has been allocated a whopping Rs 13,700 crores in the annual budget, Rs 7,456.60 crores of which is earmarked for capital expenditure. ISRO is expected to generate a revenue of Rs 219.14 crores from various launch activities in the year 2022-23, under its commercial wing NewSpaxe India Limited (NSIL). According to Budget, the Department of Space, between the years 2022 and 2023, plan to transfer 30 technologies for social, commercial ad other objectives.
A look at the numbers suggests that startups in the space sector have crossed a total number of 100, of which 47 were established in 2021. In 2019, only 11 new startups were added to the sector. According to the Economic Survey Report – 2022, as many as 47 new start-ups entered the Indian space sector in 2021, taking the tally to 101. More than 50 start-ups are working in the space sector and about 10 of them have funding of over Rs 50 crore or more, individually.
The government recently updated the SpaceCom and SpaceRS policies, liberalising the traditional satellite communication and remote sensing sectors. Under various space tech initiatives, the independent nodal agency IN-SPACe (Indian National Space Promotion and Authorization Centre) has received close to 40 proposals from large industries, MSMEs, Startups. These proposals will be responsible for covering a broad range of activities including – launch vehicle and satellite manufacturing, Earth Observation Application, communications etc. Last year, Agnikul and Skyroot, two space-based startups signed a Memorandum of Understanding (MoUs) with ISRO with the view to access facilities and expertise in developing and testing Space Launch Vehicle subsystems and systems.
These examples indicate the intervention of private players in the space sector and hence, the far-reaching reforms in the space sector are aimed at boosting private sector participation in the entire range of space activities. This spur in economic activities is surely going to open doors for collaboration and eventually evolve into critical tool for diplomacy – space diplomacy.
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