Spacetech founders believe that India’s growing profile in space exploration will bring bigger international partnerships and more funds into the spacetech ecosystem
Initiatives such as the Venus Orbiter Mission and other space programmes are expected to further bolster the confidence of international investors as well as customers.
With the increasing alliance of the government and private sector, the overall Indian spacetech ecosystem is set to become an over $77 Bn market opportunity by 2030
In another boost to India’s space exploration ambitions, the union cabinet recently cleared multiple new programmes.
The newly approved proposals include the next moon mission – Chandrayaan-4, the development of the first module of the Bharatiya Anatriksh Station (BAS-1), and the development of a Next Generation Launch Vehicle (NGLV).
Besides, the cabinet also approved the development of the Venus Orbiter Mission (VOM) to expand India’s space frontier beyond the Moon and Mars.
While the new developments do not have any direct impact on the Indian spacetech startups, the ecosystem could benefit due to the trickle down effect.
As a result of the growing collaboration between the Indian Space Research Organisation (ISRO) and private spacetech players, many startups are already working on critical projects like building spacecraft, rockets, launch vehicles, imaging technology, and much more.
Previously, Delhi NCR-based Omnipresent Robot Technologies worked with ISRO to support the navigation of the Pragyaan Rover, which was a part of Chandrayaan-3 lunar mission.
Additionally, a few other Indian startups and companies were also directly involved with the success of Chandrayaan-3 mission. These included Paras Defence, which supplied the navigation system for the spacecraft; MTAR Technologies, which manufactured the lander’s propulsion system; and Ananth Technologies, which helped build the lander’s camera.
Now, Indian startups are counting on this pattern of collaborations with ISRO to benefit from the approval of the new space programmes.
Emphasising the possibilities of more such collaborations, Lt. Gen. AK Bhatt (Retd.), director general at the Indian Space Association (ISpA), said, “While ISRO is targeting to land an Indian on the Moon by 2040, the industry is making minor yet significant contributions, by providing components used in missions such as Chandrayaan-3. As ISRO expands its scope, collaborations with the private sector are expected to grow, fostering innovation and efficiency.”
ISpA is an apex industry body which has been set up to enhance the collaborative development of the private space industry in the country.
Beyond collaborations, the success of the aforementioned missions could also push the Indian space industry into the fast lane. According to industry experts, these projects can open the floodgates for more international opportunities for Indian spacetech startups and increasing funding prospects.
Commenting on the new initiatives, spacetech startup Pixxel’s cofounder and CEO Awais Ahmed said, “These initiatives show that India is serious about becoming a global space leader, which will undoubtedly uplift the private sector, even if it’s not an immediate and direct impact. It’s more about the long term, larger ecosystem benefits that will help startups grow and innovate”.
New Programmes To Shine A Spotlight On Spacetech Startups?
Buoyed by the liberalisation of the Indian space sector in the past few years, the homegrown spacetech economy has taken off in a big way and has benefited tremendously from the opening up of the space industry to private players.
As part of its efforts to promote private players in the sector, the Centre also established the Indian National Space Promotion and Authorization Centre (IN-SPACe) as a nodal agency to support emerging startups. The spacetech startups are now able to access ISRO’s labs for research and development purposes.
Earlier this year, the Indian government also opened up the space sector for foreign direct investments (FDI) by allowing 100% FDI in certain sub-sectors. Besides, finance minister Nirmala Sitharaman also announced setting up INR 1,000 Cr VC fund for the space sector during the Union Budget 2024-25.
All of these initiatives, coupled with the credibility that ISRO holds, have made international investors positive about investing in India’s spacetech sector.
Experts believe that the approval for the new space programmes will only add to this bullishness and further bolster the confidence of global investors towards the Indian spacetech sector.
Ahmed said the rise in India’s profile in the space exploration sector increases the likelihood of international partnerships and higher funds inflow into the spacetech ecosystem. This will indirectly benefit spacetech startups.
On a similar note, Srinath Ravichandran, cofounder of Agnikul, said, “These missions enhance India’s global space market position, potentially opening up new international opportunities for startups. This environment is positive for attracting investments, securing customers, and engaging vendors, creating a platform indirectly for growth and innovation in the spacetech sector.”
Further ISpA’s Bhatt believes that the liberalisation of the FDI regime will bring in funds from global investors for spacetech startups, which would help the latter in achieving their goals. Once they are able to build their complete array of products and services, they would be in a position to get clients from across the globe, he said.
Ravichandran also believes that the new space programmes would pave the way for Indian spacetech startups to show their technology and solutions to ISRO.
It is pertinent to note that Agnikul itself has been working with ISRO for building its launch vehicle Agnibaan. The two organisations signed a pact in 2021 that allows Agnikul access to ISRO facilities and expertise for the development and testing of subsystems/ systems of space launch vehicles.
On the other hand, Pixxel, which is building hyperspectral imaging satellites for earth observation, has been collaborating with ISRO for the satellite launches.
“Startups can benefit from the overall ecosystem getting a boost, as government-led missions tend to drive innovation across supply chains, manufacturing, and data processing,” Pixxel’s Ahmed said.
The announcement of the new space programmes come at a time when the Indian private space sector is at an inflection point. India’s overall space economy is projected to become a $77 Bn+ market opportunity by 2030.
Besides, the Indian spacetech startups are not just eyeing the Indian market but also global opportunities. As such, the approval for the space programmes has opened a window of opportunity for these startups to expand their presence.
By Inc42 Media
Source: Inc42 Media