Hyderabad: As India takes pride in its achievements in space mission, the overall space economy is witnessing a significant growth with the conventional government monopoly making way for the corporate sector to spearhead the space exploration initiatives.
Union Finance Minister Nirmala Sitharaman unveiled pivotal space sector reforms in 2020 to signal the paradigm shift. Private enterprises are now recognised as 'co-passengers' in India's quest for space dominance, with a significant stake in space carriers, satellites and other lucrative ventures.
Even though the global space economy is soaring at approximately 40000 crore USD, India's current share is restricted to only two per cent. To bridge this gap and increase the country's stake in global space economy to 10 per cent, comprehensive reforms have been set into motion.
Dearth of capital a hurdle: The carriers and satellites act as indispensable pillars in advancing our forays into space. Within our borders, satellite carriers, including the PSLV, GSLV, and SSLV provide services at globally competitive costs. These carriers, along with satellites, hold impressive global rankings ranging from third to fifth in crucial domains such as communication, earth observation, weather studies, Indian Regional Navigation Satellite System (NavIC), and scientific research.
Previously, these endeavors were exclusive restricted to the government sector, primarily under the aegis of ISRO. However, a paradigm shift has unfolded with over 500 commercial enterprises collaborating with ISRO to contribute to the development of mechanical and electrical components essential for rocket and satellite construction.
Private enterprises have emerged as the driving force, responsible for constructing 90 per cent of satellite carriers and over 55 per cent of satellites. This monumental leap can be attributed to ISRO's strategic transfer of 363 technologies to more than 250 private companies.
Resulting which, there has been noteworthy progress across various fronts ranging from Skyroot and AgniKul Cosmos excelling in rocket manufacturing to Ananth Technologies, GalaxEye Space, Dhruva Space, Pixel, Space Kidz India advancing in satellite manufacturing. Also, companies like Bellatrix Aerospace and Digantara are making significant strides in allied fields.
However, since space research is a subject of national security, it must be regulated. While this collaboration is pivotal for propelling our share in the global economy, the scale of satellite and rocket production necessitates collaborative efforts beyond the scope of ISRO alone.
In view of the financial hurdle for aspiring entrepreneurs in the space industry, government has devised a new strategy. By opening up ISRO's infrastructure facilities to the commercial sector, the government aims to alleviate the capital-intensive nature of production and testing. Despite the inherent unpredictability of space exploration, over 300 firms have expressed interest in contributing to space research.
The government's commitment to support these ventures is underscored by the establishment of the Indian National Space Promotion and Authorization Center (IN-SPACe). This regulatory body not only acknowledges the national security aspect of space research but also serves as a single-window portal for legal authorisation. The overarching goal of IN-SPACe remains promotion and fortification of the role played by private firms in shaping the future of the space industry, as well as ensuring a robust and inclusive space exploration ecosystem.
Integral to this landscape is NSIL (New Space India Limited), a key player championing the cause of space industry development. ISRO prioritises activities focused on new technology and extraterrestrial research.
International market scenario: India's extensive experience in IT and AI stands as a strategic advantage in the realm of space services. Marketing organisations estimate that communication services could contribute around 30 to 40 per cent while navigation services 20 per cent and earth observation services up to 15 per cent to our burgeoning space economy. The government's proactive stance, which was reflected in the reassessment of foreign direct investment policies, is commendable.
Along with launching various initiatives to propel the space economy, there's a clear recognition of the need to target not only the domestic but also the international market for sustained growth. The key focus areas are facilitating insurance for private firms, implementing skill development programmes, fostering collaborations between academia and research institutions, navigating international space regulations, nurturing widespread interest in space knowledge and technology, and providing educational opportunities. A comprehensive evaluation of policies to encourage investment in the space sector is essential for its holistic development.
Contribution of Telugu companies: Although the space sector reforms are recent, Hyderabad-based Ananth Technologies Limited partnered with ISRO three decades ago to pioneer the construction of rocket and satellite components, in a testament to enduring collaboration. Notably, Telugu entrepreneurs have played pivotal roles in established companies like Centum Electronics and Astra Microwave, thereby offering decades of expertise in space equipment manufacturing.
The achievements of Telugu-founded entities such as Skyroot Aerospace, the pioneer in private rocket launches, and Dhruva Space, a satellite technology startup, evoke immense pride in the contributions to the space industry.
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