India's space economy to grow to $45 bn in next 10 yrs: Chairman, IN-SPACe

Chandrayaan-3's success - with 60-70% of its components coming from the private sector - enhances the sector's credibility, says Pawan Goenka, chairman of IN-SPACe

The Indian National Space Promotion and Authorisation Centre (IN-SPACe), the commercial arm of Indian Space Research Organisation (Isro), is guiding the startups to build a robust private sector ecosystem in the country’s space industry. Pawan Goenka, chairman of IN-SPACe, discusses Chandrayaan-3’s impact on the Indian private sector in a conversation with Shine Jacob. Edited excerpts:

What impact will Chandrayaan-3’s success have on the Indian private sector?

Chandrayaan-3 is predominantly a scientific mission with private-sector involvement mainly as vendors for Isro. Nevertheless, I see its success influencing the private sector in three key ways.

First, it will boost confidence among private players. Milestones like this spark increased interest and investment in the sector. Startups and even larger firms, which had not previously viewed the sector strategically, are likely to take note of the growth potential.

Second, current sideline investors will begin to take notice of the Indian private sector. Post-Chandrayaan-3, they’ll realise that India harbours tremendous potential in the sector, potentially leading to an uptick in investments.

Thirdly, Chandrayaan-3’s success — with 60-70 per cent of its components coming from the private sector — enhances the sector’s credibility. It will open up a plethora of international opportunities. Currently, the Indian private sector, while acting as a vendor for Isro, doesn’t engage much in exports. This is set to change, as global space agencies and private companies will start to take the Indian private sector more seriously.

Will Isro’s technology transfer bids, such as those for small satellite launch vehicles (SSLVs), empower the private sector?

Technology transfer is a current focal point for IN-SPACe. The agency serves as a facilitator, given that the technology originates from Isro. The SSLV transfer will be groundbreaking, marking the world’s first complete technology transfer of a launch vehicle exclusively to the private sector. There are two or three other major initiatives, but it’s premature to discuss them now.

In alignment with space policy, Isro should move away from day-to-day commercial manufacturing. Many Isro projects will eventually transition to the private sector, starting with SSLV bids.

For the SSLV, we had a pre-expression of interest (EoI) meeting that drew almost 70 players. Of these, 20 are part of the ongoing EoI stage, most being large, established entities. Technology transfer will suit companies willing to invest large sums.
 

The number of space start-ups has surged from 21 in 2020 to 150 now. What’s your take on this?

I don’t focus solely on the number of start-ups; 150-200 is a substantial number. The crucial question is their role in the entire ecosystem. We likely have more start-ups in the upstream sector — focusing on satellite manufacturing and launches. I’d like to see more startups in the downstream sector, which involves turning space data into applications.

India holds 2 per cent share in the global space economy. How do you see this evolving?

We have outlined a 10-year plan for expanding the space economy, projecting growth from around $8 billion currently to approximately $45 billion in a decade. Sectors, where India can be globally competitive, include downstream operations, underscoring a pressing need for data satellites. The forthcoming foreign direct investment (FDI) policy will ease the inflow of foreign investment into the sector. I believe space investments will significantly increase as we are close to finalising the FDI policy.