While inaugurating North India’s first-ever Space Centre in Jammu, Union Minister of State for Science & Technology, Dr Jitendra Singh mentioned that the foreseeable future of the world will hugely depend on Space Economy, Space Collaboration and Space Diplomacy. Referring to the space economy, the Minister stated that India is already receiving revenue worth millions of European Euros and US Dollars through the launching of foreign satellites.

Space Technology, over the years, has seen tremendous growth in multitude than originally envisaged. According to ISRO, in India, many Non-Government-Private-Entities (NGPEs) have started engaging in space activities that are contributing to the growth trajectory with huge commercial potential.

What is Space Economy?

Before delving into India’s share in the global space economy, it is pertinent to understand what ‘Space Economy’ is? 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.

The Global share in Space Economy: 

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. According to a ‘Space Report’ by Space Foundation, the global economy rose to $447 billion which is touted as a hike of 55% higher than a decade ago. In 2020, the commercial space activity globally grew 6.6% to nearly $357 billion, representing close to 80% of the total space economy.

India towards conquering a larger share of Global Space Economy:

It is not a hidden fact that India’s share in the space sector is growing massively. But, at present India accounts for only about 2% of the space economy, which makes India behind major economies such as the US and China. It is pertinent to mention that 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 Rs13,700 crores in the annual budget, Rs7,456.60 crores of which is earmarked for capital expenditure.

Talking about the Indian Space Agency – ISRO is expected to generate a revenue of Rs219.14 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.

Startups in Space Sector in India:

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. Union Minister Dr Jitendra Singh, while presiding over a high-level joint meeting of all the Science Ministries and Science Department at Prithvi Bhawan in February, mentioned that more than 50 start-ups were working in the space sector and about 10 of them have funding of over Rs 50 crore or more, individually.

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.

Initiatives taken to promote Space Economy:

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.

The government recently updated the SpaceCom and SpaceRS policies, liberalising the traditional satellite communication and remote sensing sectors. Last year, in 2021, Agnikul and Skyroot, two space-based startups signed a Memorandum of Understanding (MoUs) with the Indian space agency (Indian Space Research Organisation) 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.