The government is actively encouraging private-sector participation in the space industry through a series of significant reforms aimed at fostering innovation, investment, and growth. In a written reply to the Rajya Sabha today, Union Minister Dr. Jitendra Singh outlined various measures taken to support Non-Government Entities (NGEs) in the space domain, signaling a shift towards greater collaboration between the public and private sectors.
One of the key steps taken is the liberalization of the space sector, allowing NGEs to engage in a full spectrum of space activities. To facilitate this, the Indian National Space Promotion and Authorization Centre (IN-SPACe) has been established as a regulatory body responsible for promoting, authorizing, and supervising private-sector involvement in space exploration and satellite development. The introduction of the Indian Space Policy 2023, along with clear norms, guidelines, and Foreign Direct Investment (FDI) policies, provides much-needed regulatory clarity and lays the groundwork for a thriving space ecosystem.
To support startups and emerging players, the government has implemented various initiatives, including the Technology Adoption Fund (TAF), Seed Fund, Pricing Support, Mentorship programs, and access to technical laboratories. As of December 31, 2024, IN-SPACe has signed 78 Memorandums of Understanding (MoUs) with NGEs and issued 72 authorizations, demonstrating a strong momentum in private-sector engagement. Additionally, efforts are underway to establish an Earth Observation (EO) system through a Public-Private Partnership (PPP) model, further expanding India’s capabilities in space-based data collection and analysis.
Another major development is the transfer of Small Satellite Launch Vehicle (SSLV) technology to Indian companies, aimed at boosting domestic satellite launch capabilities. The government is also creating new opportunities for Indian entities to access orbital resources, ensuring they remain competitive in the global space industry. In a move to further encourage space startups, the government has proposed setting up a ₹1000 crore Venture Capital Fund in the upcoming financial year, providing crucial financial support to emerging players in the sector.
The engagement between IN-SPACe and private entities has been steadily growing, with approximately 330 industries, startups, and Micro, Small, and Medium Enterprises (MSMEs) currently involved. These organizations are receiving assistance in various forms, including authorization for space activities, access to satellite data, technology transfer, promotional opportunities, and the use of IN-SPACe Technical Centres and ISRO test facilities.
The steps taken by the government reflect a strong commitment to making India a global leader in space technology by integrating private-sector capabilities with the country’s existing space infrastructure. With increasing opportunities, supportive policies, and financial backing, the Indian space sector is poised for remarkable growth, paving the way for greater innovation, employment, and global competitiveness in the years ahead.
