NEW DELHI: The number of startups in the rapidly growing Indian space sector has more than doubled in the past year, the Economic Survey released on Monday showed.
The total number of space startups in the country has crossed 100, of which 47 were established in 2021, up from 21 in 2020. In 2019, only 11 new startups were added in the sector.
New government policies concerning the sector, coupled with participation from the private players, have been the key factors behind the growth of space startups in the country, according to the Survey. “With these recently undertaken policy initiatives and private sector participation, the Indian space sector is expected to capture a larger share of the global space economy, which was close to $447 billion in 2020. At present, India accounts for only about 2% of the space economy, much behind the major players, the US and China,” the Economic Survey said.
In an interview on 17 January, Lt. Gen (Retd) Anil Kumar Bhatt, director general of the Indian Space Association (ISpA), an industry body, had said that through 2022, the Indian government is expected to introduce and expand three policies as part of its Space Activity Bill — Space Communication, Remote Sensing and Transfer of Technology.
Each of these policies were first introduced in 2020 and are directed at helping private companies offer communication services, satellite-based data and analytics services, and use resources owned or governed by the Indian government to build their own products and services, respectively.
The bill, according to Bhatt, is also likely to lay down conditions for foreign direct investment (FDI) in India’s space sector, which could help local startups attract foreign investment. Startups and experts in the space sector have often said the lack of funding is affecting their ability to match global competitors.
That said, 2022 is expected to be a big year for Indian space startups. Private entities Skyroot Aerospace and Agnikul Cosmos are both slated to launch their first indigenously developed rockets later this year. Skyroot is planning the launch of its Vikram-I rocket, while Agnikul is targeting at least two launches of its rocket, Agnibaan, by this year end.
Other startups in this domain are also expected to make moves through this year. Pixxel, a space satellite imaging and data analytics startup, may launch the first three of 36 imaging satellites this year. Also, Bengaluru-based Bellatrix Aerospace is expected to launch its hall-effect thruster for small satellites aboard a European space mission in mid-2022.
“The numbers showcasing the growth in space startups is promising from an investor standpoint and lays the groundwork for larger investments to finally come in this year. VCs in India will also follow this space closely and may invest accordingly. A number of these startups are also at very early stages and offer repetitive services, so some of them will fail. Investors will look more carefully at India’s space startups and invest in businesses that are already maturing beyond the initial funding stages. The space communications and remote sensing categories are most likely to attract the highest investments,” said Chaitanya Giri, a consultant at Research and Information System for Developing Countries.
Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.