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Rise of India’s Private Space Industry

  • 01 Mar 2025
  • 6 min read

For Prelims: Indian Space Research Organisation, Indian National Space Promotion and Authorisation Centre, Venture Capital, POEM 

For Mains: India’s space startups, Space Sector Reforms of 2020 and their impact.

Source: BS 

Why in News?  

The rise of private participation in India’s space sector, driven by the Space Sector Reforms of 2020, has accelerated innovation and investment by opening the industry to private players. 

How Has India’s Private Space Industry Grown? 

  • Private Participation: Over 200 space startups are now active in India, leveraging ISRO’s facilities (ISRO’s testing, launch, and ground station facilities). 
  • Private Investment: Private funding is gaining momentum and drives the space economy.  
  • Indian Startups Advancements: GalaxEye achieved the world’s first fusion of Synthetic Aperture Radar (SAR) with optical imagery, enabling rapid data compression. 
    • Pixxel is developing world’s most advanced hyperspectral satellite constellations (Firefly), while InspeCity (IIT Bombay) is working on in-orbit docking for satellite repair and refueling.  
      • Skyroot and Agnikul are pioneering private launch vehicles for cost-effective satellite deployment. 

Space Sector Reforms 2020 

  • India's Space Sector Reforms 2020 expanded private participation across all space activities, including satellite design, launch vehicle manufacturing, and ground station services, to enhance India's global space economy share. 
  • IN-SPACe was established as a regulatory body to facilitate and promote private sector participation and enables non-government private entities (NGPEs) to engage in space-based activities rather than being just vendors for ISRO. 
  • The reform has also encouraged technology transfer from ISRO to private entities through NewSpace India Limited (NSIL).

What are the Challenges Facing India’s Space Industry? 

  • Funding and Investment Gaps: While venture capital interest is rising, early-stage funding remains limited, making it difficult for startups to scale.  
  • Talent Shortage: The lack of specialized educational institutions and courses in space technology hinders talent development. 
    • Only one Indian Institute of Space Technology (IIST) exists, creating a need for more institutions and industry-academia collaborations. 
  • Global Competition: Nations like the US, China, and Russia have advanced space programs, including reusable spacecraft, space tourism, and extensive satellite constellations. 
    • India is catching up, but longer R&D cycles and limited high-end capabilities pose hurdles. 
  • Foreign Launch Vehicles: While India has developed launch capabilities, many startups still rely on foreign rockets like SpaceX's Falcon-9 due to cost and schedule constraints. 
    • Developing more efficient and reusable launch vehicles is essential for reducing dependence. 

Way Forward 

  • Boosting R&D and Infrastructure: Expand domestic manufacturing of satellite components through a Production Linked Incentive Scheme for space-grade components. 
    • Establish more IISTs and space-focused courses in IITs to build a skilled workforce. 
    • Develop a dedicated space industrial corridor like Space Coast, Florida to create a robust ecosystem for satellite and launch vehicle manufacturing. 
  • Global Collaboration: Strengthen bilateral agreements with leading space agencies (NASA, ESA, Roscosmos). 
    • Promote rideshare missions for startups to make satellite launches more affordable. 
  • Technology Transfer:  Expand ISRO’s technology transfer initiatives to enable startups to commercialize homegrown innovations. 
    • Leverage space startups to develop applications for industries such as agriculture, disaster management, and urban planning, driving commercial growth.

Drishti Mains Question: 

Discuss the significance of the Space Sector Reforms of 2020 in fostering private participation in India's space industry.

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Mains

Q. What is India’s plan to have its own space station and how will it benefit our space programme? (2019)

Q. Discuss India’s achievements in the field of Space Science and Technology. How the application of this technology has helped India in its socio-economic development? (2016)

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