Can India’s new space missions take the country’s space technology startups to a new orbit?

ABSTRACT

Spacetech founders believe India’s growing participation in space exploration will result in greater international partnerships and more funding for the space technology ecosystem

Initiatives such as the Venus Orbiter Mission and other space programs are expected to further increase the confidence of international investors and customers.

With the growing government-private sector alliance, the entire Indian space technology ecosystem will become a market opportunity worth over $77 billion by 2030

Another boost to India’s space exploration ambitions was the recent approval of a slew of new programs by the union government.

The newly approved proposals include the next lunar mission – Chandrayaan-4, development of the first module of the Bharatiya Anatriksh Station (BAS-1) and development of the Next Generation Launch Vehicle (NGLV).

Apart from this, the government has also approved the development of the Venus Orbiter Mission (VOM), which aims to expand India’s space frontier beyond the Moon and Mars.

While the new developments do not have any direct impact on Indian space tech startups, the ecosystem could benefit from this through trickle-down effects.

As a result of the growing collaboration between the Indian Space Research Organization (ISRO) and private space technology players, many startups are already working on critical projects such as building spacecraft, rockets, launch vehicles, imaging technologies and many more.

Earlier, Delhi NCR-based Omnipresent Robot Technologies had collaborated with ISRO to support the navigation of the Pragyaan rover, which was part of the lunar mission Chandrayaan-3.

Additionally, several other Indian startups and companies were also directly involved in the success of the Chandrayaan-3 mission. These include Paras Defense, which provided the navigation system for the spacecraft; MTAR Technologies, which produced the lander’s propulsion system; and Ananth Technologies, which helped build the lander’s camera.

Now Indian start-ups hope that thanks to this model of cooperation with ISRO, they will benefit from the approval of new space programs.

Highlighting the possibilities for more such collaborations, Lt Gen AK Bhatt (Retd), Director General, Indian Space Association (ISpA), said, “While ISRO aims to land an Indian on the Moon by 2040, the industry is making a small but significant contribution , providing components used in missions such as Chandrayaan-3. As ISRO expands its scope, collaboration with the private sector is expected to expand to support innovation and efficiency.

ISpA is the most important industry organization established to support the common development of the country’s private space industry.

Apart from collaboration, the success of the above-mentioned missions can also push the Indian space industry on the fast track. According to industry experts, these projects can open the floodgates for Indian space technology start-ups and increase funding prospects internationally.

Commenting on the new initiatives, co-founder and CEO of space startup Pixxel, Awais Ahmed, said, “These initiatives show that India is serious about becoming a global leader in space, which will undoubtedly uplift the private sector, even if it is not had a direct and immediate impact. Rather, it is about long-term, larger ecosystem benefits that will help startups grow and innovate.”

New programs that will shed light on Spacetech startups?

Driven by the liberalization of the Indian space sector over the last few years, the domestic space technology economy has achieved tremendous success and benefited enormously from the opening up of the space industry to private players.

As part of its efforts to promote private players in this sector, the Center has also established the Indian National Space Promotion and Authorization Center (IN-SPACe) as the nodal agency to support emerging start-ups. Spacetech startups now have access to ISRO labs for research and development purposes.

Earlier this year, the Indian government also opened up the space sector to foreign direct investment (FDI), allowing 100% FDI in certain sub-sectors. Apart from this, Finance Minister Nirmala Sitharaman also announced the creation of an INR 1,000-crore VC fund for the space sector under the Union Budget 2024-25.

All these initiatives, coupled with the credibility that ISRO has, have positively convinced international investors to invest in the Indian space technology sector.

Experts believe that the approval of new space programs will only deepen this trend and further increase the confidence of global investors in the Indian space technology sector.

Ahmed said India’s rise in the space exploration sector increases the likelihood of international partnerships and greater inflow of resources into the space technology ecosystem. This will indirectly benefit space technology start-ups.

In a similar vein, Srinath Ravichandran, co-founder, Agnikul, said, “These missions strengthen India’s position in the global space market, potentially opening new international opportunities for start-ups. This environment is conducive to attracting investment, securing customers and engaging suppliers, indirectly creating a platform for growth and innovation in the space technology sector.

Moreover, ISpA’s Bhatt believes that the liberalization of the FDI regime will bring funds from global investors to space technology start-ups, which will help the latter achieve their goals. Once they can build a full range of products and services, they will be able to attract customers from all over the world, he said.

Ravichandran also believes that the new space programs will pave the way for Indian space technology startups to showcase their technologies and solutions to ISRO.

It is worth noting that Agnikul itself collaborated with ISRO to build the Agnibaan launch vehicle. The two organizations signed a pact in 2021 that provides Agnikul with access to ISRO facilities and expertise for developing and testing space launch vehicle subsystems/systems.

On the other hand, Pixelel, which builds hyperspectral imaging satellites for Earth observation, is collaborating with ISRO to launch satellites.

“Startups can benefit from a strengthened ecosystem as a whole, as government-led missions tend to drive innovation in supply chains, manufacturing and data processing,” said Pixxel’s Ahmed.

The announcement of the new space programs comes at a time when India’s private space sector is at a turning point. India’s overall space economy is projected to become A market opportunity valued at over $77 billion by 2030.

Moreover, Indian space technology startups are looking not only at the Indian market but also at global opportunities. Therefore, the approval of space programs has opened up an opportunity for these startups to expand their presence.