Even as celebrations continue on the successful landing by India’s Chandrayaan-3 near the Moon’s South Pole, there is more good news coming in from the country’s spacetech sector. The fledgling spacetech ecosystem received $112 million in funding in CY22, which is 17 per cent higher than in CY21, according to the latest data shared by Tracxn.
This exponential increase has led India to claim the seventh spot in spacetech funding globally, the Bengaluru-based data services provider for technology companies has said, adding that it expects this growth trend to continue in the coming months.
Neha Singh, Chairperson & Managing Director Tracxn told Business Today the government’s push to open up the space sector to private operators and initiatives to support local entrepreneurs had contributed to its expansion. “During Prime Minister Narendra Modi’s US visit in June, India and the US made commitments to working towards increased collaboration in the space industry at all levels of the value chain. This will definitely have a big impact on boosting the sector and help accelerate its growth.”
Between 2010 to 2019, the sector received a modest $35 million in funding. However, following the government’s 2020 decision to open up the sector to enhanced participation by the private sector, it raised $28 million in funding. In 2021, it received $96 million in funding. The upward trend has been sustained in the current year despite other sectors such as fintech, edtech, logistics tech and health tech experiencing a funding winter.
“India’s emergence as a potent player in spacetech is further highlighted by its impressive satellite deployment,” Tracxn said in a statement.
With 381 satellites placed in the Lower Earth Orbit (LEO), India has positioned itself as a key player in this area. The successful launch of 36 satellites of Sunil Bharti Mittal promoted OneWeb by the national space agency the Indian Space Research Organisation (ISRO) illustrates India’s contribution to global satellite ownership.
Furthermore, the Indian private sector has taken the lead in launching satellites for practical applications, including satellite-based communication services like phone signals, broadband, OTT and 5G. The Union Budget 2023 initiatives seek to further support the private sector in activities ranging from launching satellites and rockets to operating Earth stations with a 0 per cent GST on launches made using Indian rockets. Plans for a Production Linked Incentive (PLI) scheme for satellite manufacturing are also in the pipeline.
Small payload-based launch vehicles have especially garnered significant attention, with key players Skyroot Aerospace and AgniKul Cosmos securing $75.6 million in funding over the last two years. Meanwhile, firms such as Pixxel, Dhruva Space and Bellatrix Aerospace offering satellite-based imaging solutions have garnered $84.2 million in funding during the same period.
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