Buoyed by the success of Chandrayaan-3, India's aspirational target for the size of its space economy is about $44 billion by 2033. With the revised FDI policy in its final phase of approval, the government expects it to enable investment in all sectors of the space economy.
Despite the successful Chandrayaan Mission, the Department of Space has informed the Parliament that as of now, no international space organisations have requested India for the transfer of technology.
The current size of India's space economy is around $8.4 billion. Of this, the downstream services market, primarily comprised of communication and data applications, accounts for close to 80% of the total space economy, wherein the private sector is a major contributor.
The upstream market i.e. satellite and launch operations is primarily contributed by the government, with the private sector playing a vendor-oriented role in the manufacturing and delivering subsystems/components.
Stating that the space economy has grown with an average Compound Annual Growth Rate (CAGR) of 8% as per various market surveys, the government told the Parliament that the investment in space startups has risen from $6 million in 2019 to over $125 million in 2023.
While the government expects the private sector to independently take up end-to-end solutions in satellite manufacturing, launch vehicle manufacturing, provide satellite services, and manufacture ground systems; it listed several schemes to encourage and handhold the private sector.
Some of such schemes announced and implemented by IN-SPACe are the seed fund scheme, pricing support policy, mentorship support, design lab for NGEs, and skill development in the space sector.
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