Funding is the biggest challenge the Indian space industry is facing today and therefore the government should consider setting up soft funds and additional incentives to turbo charge the growth of the sector, said space start-ups and ecosystem players.
The sector was all set for big growth with clarity emerging on the regulation front, however, funding remained an issue although venture capital firms had been showing interest to invest in the sector, observed experts who participated in a panel discussion at a two-day International Conference on Space 2023 that began here on Thursday.
Some eight niche areas have been identified as key drivers of the space sector which has the potential to become a $44 billion industry in the next 10 years, up from $8 billion now, said Vinod Kumar, Director, Promotion, Indian National Space Promotion and Authorisation Centre ( INSPACe).
According to Mr. Kumar, some 95% of the components required to make space solutions, equipment and products are imported currently. India may take another 10 years to make most of these components within the country and minimise the import portion and the cost.
“We have to wait until that happens. Global space and aerospace customers are looking at partners in civil and defence projects, but they prefer to commission projects to Indian providers who are already holding export licences.’‘ he added.
Godrej Aerospace, Assistant Vice-President, Maneck Behramkamdin said, start-ups were going to propel the country’s space industry.
“In addition, small and large companies collaborating and putting their minds and energies together around the industry will give it a kinetic power for accelerated growth,’‘ he said.
Highlighting the potential of each niche in space, Anirudh Sharma, CEO, Digantara said, air traffic management companies could be the ones which were making most of the money in the entire aviation industry.
“A similar thing is happening in the aerospace sector where there will be a lot of requirements for tracking what’s happening in space. It is going to be niche, but a huge business opportunity,’‘ he added.
On the regulation front, the experts were of the opinion that the Space Activities Bill, that was expected to be ready in six months, would bring in additional clarity, focus and propulsion for the industry.
“Space industry has a vital role in India becoming a developed nation by 2027. It is important that all stakeholders in the industry come together, collaborate and build a structure for India’s space sector,’‘ recommended Anil Kumar Bhatt, Director General, Heneral, Indian Space Association.
At the event, Deloitte India in collaboration with Confederation of Indian Industries has released a study titled: ‘NEWSPACE: INDIA PERSPECTIVE’. “With a focus on achieving cost-efficiency and self-sufficiency, and promoting international partnerships, the country is poised to make a lasting impact on space exploration and technology, fostering substantial growth,’‘ said Sreeram Ananthasayanam, Partner, Deloitte Touche Tohmatsu India.
According to the report, space technology is permeating facets of our modern lives − from communication to earth observation, scientific research to navigation systems, weather forecasting to disaster management, and agriculture to telemedicine.
The country’s space sector has been seeing a surge in the number of start-ups, with some 420 are already registered on the IN-SPACe portal.
Published - September 15, 2023 08:04 pm IST
