India’s space policy roadmap to result in 5x rise in country’s global market share: Industry

Welcoming the government approval of the Indian Space Policy, 2023, stakeholders have said that it will help put the country’s space economy into a growth orbit.

“With this government nod, a complete framework gets established to benefit the entire private space ecosystem in India,” co-founder and CEO of Kondapur-based spacetech startup Pawan Kumar Chandana told Business Today.

He also said the policy provisions would help give a significant boost to the sector.

“This policy will boost the [Indian space] ecosystem to gain five times the market share we currently have globally within the matter of a decade. This means everything will grow markedly including the space manufacturing ecosystem,” added Chandana.

The much-awaited policy was announced after the government decided to open up the country’s spacetech industry to private participation in 2020.

“It is indeed a remarkable move by the government at this point. It also goes to show an intention to position India as a global space power amidst emerging geopolitical and economic trends,” remarked co-founder and CEO of the Bengaluru-based space situation awareness firm, Digantara Research & Technologies, Anirudh Sharma.

Terming the announcement as a pleasant surprise secretary general of the industry body, Indian Space Association (ISpA) remarked that the policy will help clearly define the role of the government and private sector.

“It will pave the way forward with much-required clarity in space reforms and augment private industry participation to drive the space economy opportunity for the country,” said Bhatt, director general ISpA.

The Cabinet Committee on Security chaired by prime minister Narendra Modi gave its approval to the much-awaited policy, which was announced by minister of state in the Department of Space Dr. Jitendra Singh late Thursday night.

Other than bringing in clarity regarding the role to be played by government entities and private sector, the policy would help enlarge “the participation between research academia, startups and industry,” Singh said in a briefing in New Delhi.

Stakeholders felt that the policy would especially help Indian spacetech startups build, operate and realise economies of scale, while also reassuring potential investors looking to invest in the sector.  

“The policy should result in attracting more funding. Foreign investors have a lot of concerns when it comes to investing in Indian space companies since the timelines for govt approval are longer with no visibility,” said Digantara’s Sharma.

Despite a global funding winter, Indian spacetech startups managed to attract $100 million in known funding in FY23, according to BT estimates.

Stakeholders were also optimistic the policy would be regularly refreshed to keep up with advancements in the technology landscape to keep India on the same page with other space-faring nations.