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More startups, satellites, and revenue by 2025: In India’s space industry, a report predicts rapid growth.

The Indian Space Association and EY report includes policy proposals for the government aimed at assisting industry in becoming self-sustaining and provides estimates for the space economy up to 2025.

Bengaluru: According to a recent report by the Indian Space Association (ISpA) and Ernst & Young (EY), India’s well-developed space programme will likely help the satellite manufacturing sector grow to a market value of $3.2 billion in 2025 from $2.1 billion in 2020 and launch services to $1 billion in 2025 from $567.4 million in 2020.

The research was made public on Monday in New Delhi during the 2022 Indian Space Conclave. It describes the situation of the space industry and gives growth predictions for the following three years under the heading “Developing the Space Ecosystem in India: Focusing on Inclusive Growth.”

The ISpA, a non-profit organisation made up of leaders from the telecom and space industries, was established last year.

The analysis estimates that over the next three years, satellite and launch services will grow at the greatest compound annual growth rate (CAGR) of 13%, followed by satellite manufacturing at 8.1%, the ground segment at 6.9%, and satellite services at 4.2%.

The report also includes legislative and regulatory recommendations to the Government of India that are meant to assist the space industry in transitioning from being run solely by the government to becoming a self-sustaining model.

Some of the recommendations include creating a comprehensive space strategy, giving early-stage companies access to financing, giving industry access to satellite technology, improving training for satellite operations, and allowing commercial parties to use ISRO’s testing facilities.

Additionally, suggestions for technology transfer from ISRO and for talent development, including partnerships with private universities, are made. The paper lists important factors that it claims are favourable to innovation and ease of doing business and are applicable to numerous divisions in India’s defence industry.

“India sits at a crossroads with a unique and rare opportunity space for a new industry as no other developing economy like Brazil, China, or South Africa has the capability to deliver satellite services,” Narayan Prasad, a key contributor to the report and co-founder of Spaceport SARABHAI, India’s first space think tank, told ThePrint.

“After 50 years of experience with space activities and applications, there’s a massive opportunity to encourage talent and capacity across the board from startups, SMEs and large companies,” he added.

India’s emerging space industry
Over 50 businesses are currently active in the upstream (satellite manufacturing, launch services), downstream, and startup sectors of the Indian space industry, which has experienced tremendous growth over the past five years (ground segments such as consumer equipment, and data services like voice commutation or navigation).

ISRO has always been the industry’s leader, with little involvement from the private sector. Satellites, space transportation, and space applications are generally viewed of as the three components that make up the agency’s space programme. With an ISRO monopoly, the current regulatory and policy framework is constructed around this structure.

Commercial enterprises and industry groups in India have been advocating for a more accommodating and cooperative environment under which they can operate in cooperation with ISRO as more and more nations work successfully with private organisations (like NASA in the US and the European Space Agency do).

To make it simpler for commercial enterprises to participate, the Indian government has taken initiatives including establishing draught laws for space communication, navigation, and remote sensing. However, according to experts, the procedure has not kept up with technical advancements.

“The government needs to put into action its intent of opening up of the space sector by formally announcing a policy framework that provides trust to both entrepreneurs and investors,” said Prasad. “This will help continue bullish efforts in making India a hub for space-based technology and services for both local and global markets.”

The EY-ISpA analysis estimates that the global space industry will be valued $447 billion in 2020, of which 27% will come from government space budgets, 36% from ground equipment, 32% from satellite services, 3% from satellite manufacturing, and 1% from launch services. In 2025, it is anticipated to be worth $600 billion.

With 1,283 launches, the year 2020 witnessed the most satellite launches of any year, mostly as a result of the creation and deployment of affordable CubeSats (a class of miniaturised satellites). According to the report, commercial communications accounted for 84% of satellite manufacturing in 2020, followed by remote sensing, military surveillance, scientific missions, and navigation.

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