The newly established Indian National Space Promotion and Authorisation Centre (IN-SPACe) is in the final stages of formulating foreign direct investment (FDI) policies to facilitate the inflow of foreign investments into the spacetech sector in India.
During his address at the Spacecraft Mission Operations (SMOPS-2023) international conference organized by ISRO, IN-SPACe chairman Pawan Goenka announced that the policy has been drafted and agreed upon by all stakeholders. According to Goenka, the policy aims to strike a balance and create growth opportunities for Indian startups in the spacetech sector.
The policy also intends to attract foreign businesses to India, fostering technological advancements and generating investments for the sector.
Goenka highlighted the FDI constraint as a major hurdle in the space sector, preventing startups from securing investments for their growth and hindering foreign companies interested in expanding their operations in India.
Describing the space sector as a sunrise sector for India, Goenka emphasized that ISRO would increasingly focus on research and development to facilitate technology transfer to private enterprises.
The transfer of technology is expected to be a significant step for Indian startups in the space industry. Goenka further added that the private sector is taking on the development of the Polar Satellite Launch Vehicle (PSLV), and an Expression of Interest for the Small Satellite Launch Vehicle (SSLV) is about to be announced. This collaboration between ISRO and the private sector aims to facilitate the transfer of major operations from ISRO to private entities.
Under the new space policy of India, the roles of the Indian Space Research Organisation (ISRO), IN-SPACe, and NewSpace India Limited (NSIL) are defined. IN-SPACe will serve as the nodal body for promoting and authorizing space activities in the country, while NSIL will be responsible for commercializing space technologies and platforms.
According to government data, in the fiscal year 2021-22, INR 175 crore was generated from the export of launch services, data sales, in-orbit support services, and post-launch operations.
The Indian spacetech sector has attracted attention not only from domestic enterprises but also from global tech giants like Microsoft. The company has partnered with ISRO to support the growth of spacetech startups in India. As part of this collaboration, Indian spacetech startup founders will have free access to various tech tools and resources through the Microsoft for Startups Founders Hub.
Recent funding rounds for spacetech startups in India, such as Pixxel and SatSure, further illustrate the growing interest and investments in the sector. Pixxel raised $36 million in its Series B round to develop a high-resolution hyperspectral satellite constellation, while SatSure secured $5 million in its Pre-Series A round to expand its presence in Southeast Asia and accelerate product development.
