India is aiming to increase its private space companies’ share of the global launch market by five times within the next decade. This ambition is encouraged by high-profile successes seen elsewhere, such as those of SpaceX. India’s private launch market has increased significantly since the country opened the way for private launches in 2020, with the number of space startups more than doubling from 21 to 47. Skyroot Aerospace, which is valued at nearly Rs. 1,338 crore, launched India’s first privately built rocket into space at the end of 2022, and investors have poured $119 million into Indian space startups in the same year.
Challenges and Opportunities
Despite the success seen, there are challenges. India accounts for just 2% of the space sector’s global revenue, which was estimated at nearly Rs. 30,38,720 crore in 2020. Funding has only trickled in, as customers want to see successful launches before committing costly payloads to unproven designs. However, there are opportunities for India’s private space companies, such as offering a less-costly alternative to European launchers that are grounded or under development, as well as access to a bustling manufacturing hub. India’s investment in private space companies has already led to a boom for young space companies such as Skyroot and Agnikul Cosmos, which promise to slash launch costs for satellites, Satsure, offering satellite-data and analytics services, and Pixxel, which won a five-year contract from the US National Reconnaissance Office in March.
The Indian Space Research Organisation (ISRO) manages all of the country’s launch infrastructure, although Agnikul is planning its own launchpad. The government is offering millions of dollars’ worth of seed funding to startups that use satellite data to boost India’s crop yields. Startups with potential military applications are vetted for government investment separately. The privatisation effort began with a late 2020 video conference call between PM Modi and executives, and since then, PM Modi has made it clear he wants to sweep away red tape and create national champions.
ISRO will focus on exploration but still support private launch efforts, giving the country’s space startups global legitimacy. The agency will work alongside an advisory panel, with members from In-SPACe, ISPA, and NewSpace India Limited, the government’s commercial launch arm, that helped the government announce a new, business-friendly regulatory framework in April. Hindustan Aeronautics and Larsen & Toubro have a $100 million contract to deliver ISRO’s next launch vehicle in 2024.
In summary, India is aiming to increase its private space companies’ share of the global launch market by five times within the next decade, encouraged by high-profile successes seen elsewhere. While there are challenges, India’s private space companies have opportunities such as offering a less-costly alternative to European launchers and access to a bustling manufacturing hub. ISRO will focus on exploration but still support private launch efforts, giving the country’s space startups global legitimacy.
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