With the success of ISRO-led Chandrayaan-3 Moon Mission, India became the fourth in the world to make a soft landing on the lunar surface and also the first to successfully land near its South Pole. But beyond the euphoria, the event also signalled the triumph of more than 400 private companies that are part of the vendor ecosystem that ISRO has nurtured since its founding in 1969 to service its components, materials, and fabrication requirements.
Since its inception in 1969, ISRO has been at the forefront of all space-based activities. In 2020, the government announced the opening up of the sector to private firms for diffusing space technology. The Indian Space Policy 2023 delineates the roles of government organisations and provides clarity to private participants.
“Private sector participation plays a crucial role in India’s success in the space sector. It brings in much-needed innovation for developing space-based applications and services while also opening a new pool of resources and talent,” said Amit Sharma, MD and CEO of Tata Consulting Engineers.
As Space Race 2.0 picks up pace, the companies are no longer seen just as vendors. The government would like them to play a larger role in building a robust spacetech ecosystem. “Larger companies, which were primarily vendors to ISRO, have now started warming up to the idea of investing in technology and making bigger bets. So many want to have access to making rockets,” said IN-SPACe Chairman Pawan Goenka.
Large private firms are looking at working on the Gaganyaan mission. From L&T’s JV with Hindustan Aeronautics Ltd for 5 PSLV launch vehicles to involvement of Tata Consulting Engineers, Godrej Aerospace and Alpha Design Technologies, check out how large private firms are looking to contribute to India’s space economy
There is a sudden spurt in the number of spacetech start-ups in India to more than 150 entities, which is the highest in Asia. Check out what these new-age firms such as Pixxel, Skyroot Aerospace and Dhruva Space have planned for the future.
Source: Euroconsult, Arthur D. Little
Spacetech start-ups received over $15 billion in investments in 2021 in 241 deals. The total global investments for space start-ups grew 2x from $7.7 billion in 2020 to $15.4 billion in 2021 with the average deal size for spacetech start-ups rising by 35 per cent to $64 million in 2021. Since 2000, VCs have invested $27 billion in spacetech start-ups.
Indian start-ups have raised over $230 million since inception. Pixxel, founded in 2019, has raised the highest amount at $71 million. It is followed by Skyroot Aerospace, AgniKul Cosmos, SatSure and Digantara Research & Technologies in terms of funding.
Compared with the Top 2 spacefaring powers, the US and China, India stands at No. 7 in terms of satellites operated. It continues to depend on the West for imports of critical components for launch vehicles, spacecraft, and satellites. This should not come as a surprise, as the country’s space budget is merely 0.05 per cent of its GDP. In comparison, the US spends 0.25 per cent of its GDP on space.
Per a study by Arthur D. Little, India’s space industry is expected to grow to $40 billion by 2040, at a CAGR of 9.2 per cent, to reach a 4 per cent market share globally. But it says India can do better and touch $100 billion by that year to corner 10 per cent market share. With an enabling policy framework, government providing funding support to firms in this space, increased participation from private players, India is raring to make bigger leaps in the space sector.