Context:

The Indian government has decided to allocate ₹1,000 crore for space startups. It is a significant milestone that showcases the country's commitment to fostering innovation and growth in the space sector.

·        This move is part of the government's efforts to promote entrepreneurship and attract global investment in space sector.

Significance of this allocation:

•  Encouragement for Private Sector Participation: By establishing a dedicated fund for space startups, the government aims to encourage private investment, recognizing the essential role that private enterprises play in driving growth and innovation in the space industry.
• Enhancing Global Competitiveness: The funding will enable Indian startups to develop cutting-edge technologies, positioning them to compete on a global scale. This can enhance India's reputation as a key player in the international space arena.
• Job Creation and Economic Impact: Supporting space startups has the potential to create numerous job opportunities, contributing to economic growth. A robust space sector can generate both direct and indirect employment, boosting the overall economy.
• Strengthening the Ecosystem: The fund will help create a more vibrant ecosystem for innovation, attracting talent, investment, and collaboration. This can lead to synergies between startups, established companies, and research institutions.
•  Strategic National Interest: Investing in the space sector aligns with national interests, enhancing capabilities in satellite technology, space exploration, and national security. A robust space industry is essential for various applications, including communication, weather forecasting, and defense.
• Vision for the Future: This funding is part of a long-term vision for the Indian space sector, aiming for significant contributions to the global space economy and reaching milestones such as a $100 billion space economy by 2040.

Key Factors Contributing Growth of Space Sector:

•  Ecosystem Growth: India has seen a rapid increase in the number of space startups, with nearly 200 startups emerging as of 2024, up from just one in 2022. This reflects significant reforms and a supportive environment for innovation.
• Government Support: The Indian government has taken proactive steps to boost the space sector, including the recent announcement of a ₹1,000 crore Venture Fund to support space startups. Policies such as the Indian Space Policy 2023 have further opened avenues for private participation.
• Investment Surge: In 2023, investments in Indian space startups reached approximately $124.7 million, signaling growing confidence and interest from investors in this sector.
• FDI Provision: The allowance of 100% Foreign Direct Investment (FDI) in the space sector has significantly boosted new initiatives and attracted entrepreneurs. This policy facilitates easier access to capital and resources for startups.
• Key Players: Notable private companies include Pixxel, Dhruva Space, and Skyroot Aerospace, which have developed innovative satellite technologies and launch capabilities, such as India's first privately developed rocket, Vikram-S.
• Space economy: India's space economy is currently valued at approximately USD 8.4 billion, which translates to Rs 6,700 crore, and it's growing rapidly. In fact, the country's share in the global space economy is expected to rise fourfold by 2030, from 2% in 2021 to 8% . By 2047, India's share is projected to reach an impressive 15% of the global space economy.

Government Support for Startups including space startup:

• Removal of Angel Tax: The abolishment of the 31% angel tax will ease financial burdens on startups, encouraging more investment.
• Corporate Tax Reductions: Reductions in corporate tax for foreign companies are designed to attract international investments into the Indian startup ecosystem.
•  Increased MUDRA Loan Limits: Raising the MUDRA loan limit from ₹10 lakh to ₹20 lakh provides more financial resources for startups to utilize in their growth and development.

Public-Owned Government Bodies in India's Space Sector that promotes space sector growth:

About Indian Space Research Organisation (ISRO)

ISRO is India's space agency responsible for planning and executing space-related activities. ISRO operates under the Department of Space, which reports directly to the Prime Minister of India.

Origin and History of ISRO

Establishment of INCOSPAR: Formed in 1962 under the Department of Atomic Energy (DAE) at the suggestion of Dr. Vikram Sarabhai.

·        INCOSPAR built the Thumba Equatorial Rocket Launching Station (TERLS) in Tamil Nadu.

·        The first sounding rocket (Nike-Apache) was launched from TERLS on November 21, 1963.

Establishment of ISRO: ISRO was officially established on August 15, 1969, in Bengaluru, replacing INCOSPAR with a broader mandate.

Objectives of ISRO:

·        The primary goal is to develop and apply space technology for various national needs.

·        ISRO has established major space systems for communication, television broadcasting, and meteorological services.

Recent ISRO Missions: 

Conclusion:

The ₹1,000 crore Venture Fund for space startups is a strategic move to propel India's space sector forward. By encouraging private investment, fostering innovation, and developing cutting-edge technologies, India can emerge as a significant player in the global space industry. This development has the potential to contribute significantly to India's economic growth, making the country a hub for space technology and entrepreneurship.