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Source: The post is based on the article “Explained | Why is India’s space industry looking for private sector investment?” published in The Hindu on 26th July 2022.
What is the News?
Principal Scientific Adviser has stated that the government would soon come up with a new space policy to increase private sector participation in the industry.
Why is the development of the Space Sector important?
Enhancing space technology would be beneficial to bolster connectivity and combat climate-related implications through a more secure and effective means. For example:
Weather Forecasts: Satellites provide more accurate information on weather forecasts and assess (and record) long-term trends in the climate and habitability of a region. This will help in preparing more pragmatic and combative plans of action for farmers and dependent industries.
Connectivity: Satellite communication can reach more remote areas where conventional networks would require heavy complimenting infrastructure. According to World Economic Forum, satellite communication can help connect 49% of the world’s unconnected population.
Where does India stand in the global space market?
Indian Space Industry: The Indian Space Industry was valued at $7 billion in 2019 and aspires to grow to $50 billion by 2024.
-As per SpaceTech Analytics, India is the sixth-largest player in the industry internationally having 3.6% of the world’s space-tech companies (as of 2021). The U.S holds the leader’s spot housing 56.4% of all companies in the space-tech ecosystem.
-India’s standout feature is its cost-effectiveness. India holds the distinction of being the first country to have reached Mars orbit in its first attempt and at $75 million — way cheaper than Western standards.
Space-related investment: The U.S. and Canada were the highest receivers of space-related investment in 2021. Scrutiny of SpaceTech data puts forth that the U.S. alone has more companies in the sector than the next 15 countries combined.
What are the reforms initiated in the space sector to promote private sector participation?
IN-SPACE: In 2020, the Union government announced the establishment of the Indian National Space Promotion and Authorisation Centre(IN-SPACe). It was mandated the task of promoting, authorizing and licensing private players to carry out space activities.
Establishment of Indian Space Association(ISpA)
Transferring technologies developed by ISRO to industries for commercialisation: NewSpace India Ltd(NSIL) constituted in 2019 is mandated with the task to transfer the matured technologies developed by the ISRO to Indian industries.