Why should we boost space companies in India?
The government of India is going to adopt a law that boosts private space companies and public-private partnerships in the country. This is very welcome news, and guess why:
India has really great potential in space technology and the space sector but used to face with a lack of space regulations and licensing framework. Also, there was not a lot of promotion of the space segment as a possible solution to the challenges in the traditional sectors such as mining or agriculture businesses. As a result, domestic investors interested in supporting space companies.
Last year Precious Payload worked closely with several Indian universities and private space companies to understand what kind of resources they have and how they think about satellite technology in general. And what we saw was just incredible. Just imagine: in order to launch a satellite an Indian startup was to become a US company because they could not get that license needed in their home country being an Indian-registered company.
That is why the announcement made last week is a tipping point for the space industry in India. The pool of capital will become available to the newly made startups in India. This will enable space companies to become domestic players in the domestic market.
There are 300 private space companies in India that used to be subcontractors for ISRO, the Indian Space Research Organization. From now space startups can use their resources and technologies to span out their business. This is a tremendous potential for the Indian private space sector.
The next challenges and opportunities that the Indian space economy is to deal with in the near future:
- promoting the domestic use of the space segment, meaning that now India has this cycle of creating a pool of space startups;
- promoting the data and the solutions generated by those startups to those domestic end-users of the Indian space segment, be it defense, agricultural, mining or logistics applications;
- leveraging Indian space technologies and an amazing pool of talents for the international market.
There is a huge pool of talent and proven technology that can be utilized by commercial space companies in India. We truly believe that with this potential the country can really build the cases domestically. Moreover, boosting the private space sector India should look in the direction of worldwide expansion to compete with large players on international markets, especially in Asia, the Middle East, and Africa.
Check more interesting posts from Precious Payload if you want to launch a startup in the space industry:
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