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India Eyes Major Expansion in Space Economy Share by 2040

India is ambitiously aiming to expand its footprint in the global space economy, targeting a five-fold increase that could see its share skyrocket to an impressive $100 billion by 2040. This bold aspiration reflects India’s dynamic advancements in space technology and its increasing role on the international stage.

India’s 2023 Policy and the IN-SPACe Initiative

The Indian Space Policy 2023 marks a significant shift towards inclusivity in space exploration by facilitating comprehensive participation from Non-Governmental Entities (NGEs) across all space activities. Central to this initiative is the Indian National Space Promotion and Authorization Centre (IN-SPACe), established to bridge the gap between the government and private sector in the space domain.

Through schemes like the Seed Fund Scheme, Pricing Support Policy, and Mentorship Support, IN-SPACe aims to bolster private sector involvement in the manufacturing of launch vehicles and satellites. Collaborative efforts with industry associations and the focus on cost-effective, impactful missions highlight the policy’s aim to democratize space exploration and enhance India’s standing in the global space economy. There has been an investment of over Rs.1,000 crore by private Space Startups in the current financial year from April to December 2023.

India’s Space Odyssey

Since the inception of India’s space program in 1969, the nation has made remarkable strides, culminating in the groundbreaking Chandrayaan-3 mission’s touchdown on the uncharted lunar south pole. This achievement underscores India’s rapid advancement in space exploration, placing it alongside leading space-faring nations.

The significant increase in space sector funding, with a 142% rise in the space budget over the last nine years, reflects the government’s commitment to bolstering India’s position in space science. This financial boost, complemented by substantial increases in the budgets for the Department of Science & Technology and the Department of Atomic Energy, has fostered an ideal environment for innovation, research, and entrepreneurship in the space domain.

The government’s strategic investments have catalyzed a vibrant synergy between academia, startups, and the space industry, leading to a surge in private sector engagement and innovation. This collaborative ecosystem has been instrumental in the successful launch of a significant majority of foreign satellites by ISRO in recent years, generating considerable revenue and marking a notable increase in operational scale and efficiency.

ISRO’s Satellite Launch Services

ISRO has made remarkable strides in the satellite launch domain, with over 90% of its 424 foreign satellite launches occurring in the last nine years. This period has not only seen a surge in launch activities but also a significant increase in revenue, with ISRO earning $157 million out of a total of $174 million from these launches. European satellite launches have similarly contributed to this financial success, generating €223 million out of €256 million in the same timeframe. This notable growth underscores ISRO’s escalating scale and efficiency in the global space economy.

India Amplifies Space Sector with Liberalized FDI Policy

India’s space sector is set for a transformative leap with the recent FDI policy amendment under the Indian Space Policy 2023. This strategic move allows up to 74% FDI via the automatic route for key activities like satellite operations and manufacturing, while launch vehicles and spaceport creation can attract up to 49% FDI. For certain segments, 100% FDI is now permissible, paving the way for heightened global participation and innovation in India’s burgeoning space industry

Anusandhan National Research Foundation

India is poised to revolutionize its scientific research landscape with the introduction of the Anusandhan National Research Foundation (NRF), which aims to significantly enhance public-private partnerships in research. This innovative initiative is set to transcend the traditional models of research funding, offering a more collaborative and integrated approach that aligns with the dynamic needs of contemporary science and technology.

New Paradigm in Research Funding

The NRF is designed to be a robust platform facilitating a seamless synergy between the government and private sectors in advancing scientific research. With a visionary budget allocation of Rs. 50,000 crores over the next five years, the foundation plans to source a substantial portion of its funding—approximately 60% to 70%—from non-governmental channels. This model not only diversifies the funding base but also encourages active participation from the private sector, heralding a new era of research financing in India.

Impact on Daily Life

India’s space technology advancements are not just limited to economic gains or scientific achievements. They have a tangible impact on everyday life, contributing to sectors like disaster management, agriculture, and infrastructure, among others. This widespread application underscores the integral role of space technology in India’s developmental narrative.

Looking Ahead

With a clear vision and strategic initiatives in place, India is on a promising path to not only achieving but possibly exceeding its ambitious target for the global space economy. This journey reflects a blend of visionary leadership, technological prowess, and collaborative efforts spanning government and private sectors.
As India continues to make strides in space exploration and technology, the global community watches keenly, anticipating the innovations and contributions that will emerge from this burgeoning space powerhouse.

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What is India's goal for its global space economy by 2040?

India aims for a five-fold increase in its global space economy, targeting an impressive $100 billion by 2040.

What is the IN-SPACe initiative?

IN-SPACe is the Indian National Space Promotion and Authorization Centre, a key component of the Indian Space Policy 2023. It aims to facilitate private sector involvement in space activities and bridge the gap between the government and private space entities.

What schemes does IN-SPACe offer to promote private sector engagement in space activities?

IN-SPACe offers schemes like the Seed Fund Scheme, Pricing Support Policy, and Mentorship Support to encourage private sector participation in the manufacturing of launch vehicles and satellites.

What is the Anusandhan National Research Foundation (NRF)?

The NRF is a transformative initiative in India's scientific research landscape, aiming to enhance public-private partnerships in research by diversifying funding sources and encouraging active participation from the private sector.

About the Author

Hey there! I'm Nikesh, a content writer at Adda247. I specialize in creating informative content focused on UPSC and State PSC exams. Join me as we unravel the complexities of these exams and turn aspirations into achievements together!

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