In a significant move to propel India’s aerospace sector, Finance Minister Nirmala Sitharaman announced a substantial allocation of ₹1,000 crore for space technology development in the Union Budget 2024. This substantial funding is set to support over 180 government-recognized space technology startups across the country, fostering innovation and driving growth in the space industry. This announcement follows the Economic Survey 2023-24, which highlighted the remarkable strides India has made in the space sector over recent years. The survey meticulously detailed advancements in rockets, satellites, spacecraft, and ground infrastructure, emphasizing the sector’s critical role in the nation’s technological and economic landscape.
India currently boasts 55 active space assets, encompassing 18 communication satellites, nine navigation satellites, five scientific satellites, three meteorological satellites, and 20 Earth observation satellites. These assets underscore India’s growing capabilities in space exploration and utilization. Finance Minister Sitharaman’s proposal to establish a ₹1,000 crore venture capital fund aims to stimulate further advancements in space technology. This fund is expected to enhance India’s standing in the global space industry, encouraging private sector participation in space exploration and commercialization. By providing financial support and incentives, the government seeks to accelerate the development of cutting-edge space technologies and foster a robust ecosystem for space startups.
New Space India Limited (NSIL) has already demonstrated its prowess in the global commercial launch services market. The successful execution of contracts to launch 72 satellites for OneWeb into Low Earth Orbit through LVM3 missions has established LVM3 as a reliable launch vehicle. This achievement highlights India’s growing prominence in the international space arena. The Indian National Space Promotion and Authorisation Centre (IN-SPACe) has also played a pivotal role in promoting and authorizing space activities. As of January 1, IN-SPACe received 440 applications from over 300 Indian entities. These applications cover a range of activities, including authorization, handholding, facility support and consultancy, technology transfer, and facility usage. Additionally, 51 Memorandums of Understanding (MoUs) and 34 joint project implementation plans have been signed with various non-governmental entities. These agreements aim to extend the necessary support for carrying out space activities, further bolstering the collaborative efforts between the government and private sector.
The Budget 2024 allocation for space technology reflects the government’s commitment to advancing India’s space capabilities and fostering innovation in the aerospace sector. With the support of this funding, the Indian aerospace industry is poised for significant growth, positioning the country as a key player in the global space economy. This strategic investment will not only drive technological advancements but also create new opportunities for startups and private enterprises, contributing to India’s economic and technological development.
