According to a new study released on Monday, India’s space sector will expand at a compound annual growth rate (CAGR) of 6% and reach a market size of $12.8 billion (about Rs 1.05 lakh crore) by 2025. A production-linked incentive (PLI) scheme will also help the country’s space economy.
“At a CAGR of 6%, India’s space economy is anticipated to increase to $13 billion by 2025. The category of satellite services and applications, which would account for 36% of the space economy, “According to the EY study, which Indian Space Association (ISpA) had commissioned.
According to the survey, the ground segment is likely to contribute the most ($4 billion), followed by satellite equipment production ($3.2 billion), satellite application and services ($4.6 billion), and satellite launch-related services ($1 billion).
“We are pursuing industry-friendly and light-touch rules in the space sector,” said AK Bhatt, director general of ISpA. He said that the sector will benefit from the foundation provided by the Spacecom policy, which is now under development.
According to the findings, India now boasts more than 100 spacetech start-ups, and investment in these companies surged 196% year over year in 2021.
It also pushed for businesses in the satellite industry to have access to affordable early-stage finance or loans.
A single window approval process through a nodal body to improve ease of doing business, the introduction of a Production Linked Incentive (PLI) scheme for satellite manufacturing, similar to that of mobile phones and telecom equipment, and the promotion of independent launch services provided by Indian private companies for satellites and other spacecraft are just a few of the recommendations made by the study.
It also requested access to the testing facilities run by the Indian Space Research Organization (ISRO).
A thorough space policy covering upstream and downstream activities will assist establish a vision and give policy stability to support the investment climate, according to the finding, helping to strengthen India’s space economy.
According to the present regulations, the establishment of upstream and downstream space operations necessitates regulatory permits from numerous agencies and departments under the Department of Space, Department of Telecommunications, and Ministry of Information & Broadcasting.
According to a lobbying organisation based in Delhi, the emergence of India’s space economy has the potential to close the digital divide, usher in cutting-edge space-based services, and propel India to the front of the spacetech race.
The country’s satellite manufacturing is anticipated to develop as a result of the country’s rising demand for small satellites, according to the Make in India initiative of the Centre.
The government should push for the involvement of private companies, permit lower costs for satellite development and launch, and guarantee a high Return on Investment in order to attract investment in the sector (RoI).
According to the paper, consumer services would make up the majority of the Indian market for satellite services (79% of the country’s overall services market by 2025).
Prime Minister Narendra Modi launched the Indian Space Association (ISpA) through a video conference in October of last year.
OneWeb, Bharti Airtel, Larsen & Toubro, Nelco (Tata Group), Mapmyindia, Ananth Technology Limited, Walchandnagar Industries, Godrej, Hughes India, Azista-BST Aerospace Private Limited, BEL, Centum Electronics, and Maxar India are among the companies represented by the space organisation.