India had its moonshot last year with the successful completion of the Chandrayaan-III mission, with which it became the first country to land on the Moon's South Pole — often called the dark side of the moon. This achievement ignited India's space ambitions. In the Interim Budget presented by Finance Minister Nirmala Sitharaman on Thursday, February 1, ₹7,313.73 crore was allocated to space research.
In the 2023-24 Budget, Finance Minister Nirmala Sitharaman allocated ₹12,543.91 crore to the Department of Space (DoS) - an 8% yearly decline. While the amount allocated in the Interim Budget is lower still, a full Budget will be presented this July following the Lok Sabha elections.
Now that India is working towards its first crewed mission to the moon — Gaganyaan TV-D1, slated for a 2025 launch — India's space sector expected a substantial boost. Announced in 2018, the mission suffered setbacks due to the pandemic before the success of Chandrayaan-III infused fresh energy into India's space programmes.
The Satcom Industry Association-India (SIA-India) had articulated a comprehensive set of proposals aimed at elevating India's space programme to unprecedented heights. This pre-budget memorandum, submitted to Finance Minister Nirmala Sitharaman, delineated ambitious fiscal demands designed to build upon the successes of past missions and pave the way for Gaganyaan.
Great Expectations
SIA-India, in its memorandum, had pushed for a substantial increase in India's space budget, from the current $1.4 billion to an ambitious $62 billion. This, the SIA-India said, will align India's space spending with global leaders, specifically the United States. The rationale underlying this proposition underscored the potential to engage the private sector, drive technological advancements, and position India as a formidable force in the rapidly expanding global space economy.
Boost for the Private Sector?
The memorandum also articulated a vision for enhanced private-sector involvement in space initiatives. SIA-India envisioned the infusion of additional funds to not only stimulate innovation but also to fortify India's position in the international space arena.
The Rise of Space Startups
The memorandum outlined a strategic vision for cultivating a thriving ecosystem for space startups. SIA-India proposed financial incentives, interest subsidies on loans, and collaborative industry-academia efforts, drawing inspiration from successful schemes such as the IDEx initiative. The extension of the tax holiday for space startups to a minimum of seven years is aimed at providing a sustained period of fiscal relief to foster growth, innovation, and sustainability.
The Need for CSR
Recognising the need for a more focused approach to CSR spending, SIA-India emphasised the necessity for clear guidelines aligned with CSR objectives. This, it said, will ensure that corporate contributions significantly impact research and innovation in the space sector. Additionally, the proposal seeks liberalised Foreign Direct Investment (FDI) norms, an automatic approval route, and supportive policies to attract an estimated $13 billion in overseas capital by 2025. This infusion of foreign investment, SIA-India said, will catalyse advancements in launch vehicles, and satellite manufacturing, and contribute significantly to achieving the ambitious target of a 10% share in the global space economy by 2030.
However, the space sector will have to wait for the full Budget, which will be announced in July, following the Lok Sabha elections.
First Published: Jan 31, 2024 1:41 PM IST
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