Private participation in India’s Space Sector

Source-This post on Private participation in India’s space sector has been created based on the article “Private participation: The space sector has opportunities for India” published in “Business Standard’’ on 28 February 2024.

UPSC Syllabus: –GS paper-3– Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology

News-The article discusses the significance of increasing private sector participation in space. Private Participation in India’s Space Sector

What is the need for attracting private sector participation in the space sector?

1) Unleashing the true potential of space economy– Currently, India’s space economy is worth $8 billion. This is just 2 per cent of the global space economy.

2) Space station-India intends to launch its own space station by 2035. Thus, it would require funding not only from government sector but private sector also.

3) Strategic Goals-Space has become one of the dimensions of modern warfare. This requires optimal use of space and private sector participation can help in achieving this objective.

4) Lower the burden on ISRO-Enhanced private sector participation would allow the Indian Space Research Organization to exclusively focus on research and development.

A detailed article on Private-sector participation in space can be read here.

What are the steps taken by the government to enhance private sector participation in the space sector?

1) IN-SPACE: This was launched to provide a level playing field for private companies to use Indian space infrastructure.

2) New Space India Limited (NSIL): Its aim is to use research and development carried out by ISRO over the years for commercial purposes through Indian industry partners.

3) Indian Space Association (ISpA): It aims to open the Indian space industry to private companies and startups. For ex- around 190 startups are working in this area.

4) Liberalized FDI regime-The government has allowed following fields under automatic route-
A) Firms in satellite manufacturing and operation, satellite data products and ground segment, and user segment can get FDI up to 74 %.
B) For manufacturing components and systems/subsystems for satellites,100 % FDI is allowed.

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What is the significance of enhanced private participation in the space sector?

1) Boost to space economy– It will increase India’s share in the global space economy.

2) Innovative Solutions-It can provide innovative solutions in areas such as telecommunication, agriculture, climate change, and disaster management.

3) Employment Generation-Increased private-sector participation in the country’s space sector can provide employment to youths.

4) Growth of industrial sector-It will lead to development of  industrial clusters. For ex- Salem aerospace cluster in Tamil Nadu and the Belagavi aerospace cluster in Karnataka.