The government’s multifaceted approach aligns with the Aatmanirbhar Bharat initiative, aiming to make India self-sufficient in complex space technologies and support startups working in niche areas.
The Indian government is actively fostering a vibrant private space sector through a series of liberalised policies, dedicated funding schemes, and regulatory frameworks, as revealed in a written reply by union minister of state (independent charge) Dr. Jitendra Singh in the Rajya Sabha on Thursday.
The government has taken significant steps to open up the space domain to Non-Government Entities (NGEs), allowing them to engage in comprehensive space activities. This liberalization is anchored by the establishment of the Indian National Space Promotion and Authorization Centre (IN-SPACe), which serves as a crucial facilitator, authorizing and supervising NGE activities.
To provide regulatory clarity and encourage investment, the government has implemented the Indian Space Policy – 2023, along with Norms, Guidelines and Procedures (NGP) and a Foreign Direct Investment (FDI) policy. These measures aim to create a conducive environment for a thriving space ecosystem.
Dr. Singh highlighted the government’s commitment to supporting startups and NGEs through various schemes, including the Technology Adoption Fund (TAF), Seed Fund, Pricing Support, Mentorship, and access to Technical Labs. As of December 31, 2024, IN-SPACe has signed 78 Memorandums of Understanding (MoUs) with NGEs and issued 72 authorizations.
Venture Capital Fund in the offing
In a significant move to bolster the startup ecosystem, the government has proposed to establish a ₹1,000 Crore Venture Capital Fund in the upcoming financial year. Furthermore, IN-SPACe is actively working towards establishing an Earth Observation (EO) System through a Public-Private Partnership (PPP). The technology transfer of the Small Satellite Launch Vehicle (SSLV) to Indian companies is also in progress, creating new opportunities for domestic entities.
Approximately 330 industries, startups, and MSMEs are currently associated with IN-SPACe, benefiting from services such as authorization for space activities, data dissemination, technology transfer, promotional activities, and access to IN-SPACe Technical Centre and ISRO test facilities.
A key initiative, the Technology Adoption Fund (TAF), aims to promote the commercialization of early-stage space technologies by Indian industries, particularly startups. The TAF focuses on:
- Upgrading existing space technologies from Technology Readiness Level (TRL) 3/4 to TRL 7/8 or higher.
- Developing innovative products.
- Facilitating import substitution of critical components.
To qualify for financial support under the TAF, startups must be under Indian management and control, possess proposals with potential commercial value, and refrain from sourcing funding from other central or state government departments for the same project.
The minister conveyed that the government’s multifaceted approach aligns with the Aatmanirbhar Bharat initiative, aiming to make India self-sufficient in complex space technologies and support startups working in niche areas. By enhancing domestic technical capabilities, India is poised to become a major player in the global space sector.
