A comprehensive policy for the space sector, introduction of production linked incentive (PLI) scheme, and promotion of independent launch solutions for private sector satellites are needed for the sector, states a sectoral report.
The report titled 'Developing the space ecosystem in India: focusing on inclusive growth' was prepared by the Indian Space Association (ISpA) and EY.
For the creation of enabling space economy in India, the report has suggested among others:
(a) drafting of a comprehensive space policy covering upstream and downstream activities that would help to formulate vision and provide policy predictability to bolster investment climate
(b) introduction of production-linked incentive (PLI) scheme for satellite manufacturing, like mobile handsets and telecom equipment and
(c) promote independent launch solutions of Indian private companies for satellites and other spacecrafts.
According to the research report, the Indian space economy is set to grow to $12.8 billion in 2025 from $9.6 billion in 2020.
The satellite services and application market in India will be driven by greater demand for high bandwidth and lower latency data requirements, connect the unconnected with voice and data communication services and increase in IoT and autonomous systems.
In addition, increase in demand for military and defense satellite communication solutions is likely to spur the market forward.
The "Make in India" initiative is expected to spur satellit e manufacturing growth owing to increased demand for small satellites.
By 2025, the satellite manufacturing segment will be the second fastest growing in the Indian space economy.
Setting-up space parks across the country is likely to give a fillip to companies operating across the space value chain, especially manufacturing. It will be key to attracting global startups working in the space sector and help to incubate spacetech companies in India.
Currently, India boasts of over 100 spacetech startups. The year 2021 was a watershed year for spacetech startups, with investments reaching $68m, a y-o-y increase of 196 per cent. There were a total 47 new spacetech startups established in India in 2021, the report said.
(WIth inputs from IANS)
