Success would mean a doubling of the space industry’s contribution to India’s GDP, from the current 0.25% to 0.5% by 2040, with a potential creation of more than 3 million additional jobs in the country, according to ADL.
A transformation is underway in the global space sector, from government-led programmes to a fast-growing presence of the private sector, according to a new report by consultancy firm Arthur D. Little (ADL).
The ADL report released on Wednesday notes that India too reflects this transformation and with the right initiatives, it could go from being a $8-billion space economy to $100-billion one by 2040.
The consultancy calls the next stage of evolution of the space industry Space 4.0, with the previous three phases going from early astronomy to the race to the Moon to more international cooperation among nations, some of which overlap with the new phase.
The Indian space market is growing at 4.3% CAGR at present, outpacing the global average of 2.2%. With its current growth trajectory, India’s space economy could reach $40 billion by 2040. However, the report argues that India could target a much higher rate of growth for its space industry and potentially hit $100 billion.
The “unrealised $60 billion” that can materialise in an accelerated growth scenario, ADL says will result from a policy focus on driving adoption of satellite-based internet connectivity that can compete with terrestrial internet, becoming a world leader for launch services, building capacities in space mining, manufacturing, in-orbit servicing.
Success would mean a doubling of the space industry’s contribution to India’s GDP, from the current 0.25% to 0.5% by 2040, with a potential creation of more than 3 million additional jobs in the country, according to ADL.
While India’s share of the global space economy is a mere 2% at present, the report projects it to rise to 4% at a compounded annual growth rate (CAGR) of 9.2% over 2022-2040 if the current growth trajectory sustains.
A significant part of the growth will result from both increasing government investment in space and the boom in private sector participation, which will cater to space-market demands such as launch services and satellite services (including communication, navigation, media and entertainment, internet connectivity).
The blossoming of domestic space startups after the recent liberalisation of the sector—with the Indian Space Research Organisation (ISRO) playing a key role—serves as a dipstick for how the private sector perceives this potential. Space startups received $112 million in funding in 2022 and of the $247 million received since 2016, $204 million, or just over four-fifths has come in 2021 and 2022—after the government set up the Indian National Space Promotion and Authorization Centre (INSPACe) that acts as a link between ISRO and private-sector space enterprises.
Despite such a rush of investment, funding and technology remain key challenges, the ADL report notes. The government is actively considering proposals for the revision of the FDI policy for the space sector.
IN-SPACe chairman Pawan Goenka had said in May that the revised FDI policy should be out “in three months” even as the government had earlier said that “the specific role of IN-SPACe for channeling FDI will evolve after approval of revised FDI policy.”
Towards this end, in terms of both funding and technological collaboration from other geographies, India should build a “white-list” of jurisdictions, believes Brajesh Singh, associate director of ADL South Asia and India. “We need to relook at global relationships we have built in the past. A lot of changes have happened in the recent years on this”, Singh said in reply to a question at the release.
India may have acquired a reputation for high-level technological competence on a shoestring budget but rival China is conducting 10 times more launches per year and has 500 active satellites compared with India’s 50.
https://www.financialexpress.com/industry/a-100-billionopportunity-for-india-in-space/3188515/
