India's goal is to have $44 bn space economy by 2033: IN-SPACe chief

Space sector is expected to get $25 bn in investments in 10 years, says Pawan Goenka, chairman of the commercial arm of Isro

Space startup Agnikul Cosmos launched its Agnibaan rocket for the first time on Thursday, powered by the only Indian rocket engine to use both gas and liquid fuel in the country's second flight of a privately built rocket. PAWAN GOENKA, chairman of the Indian National Space Promotion and Authorisation Centre (IN-SPACe), spoke to Shine Jacob over the phone about the space sector in India. IN-SPACe is the commercial arm of the Indian Space Research Organisation (Isro). Edited excerpts:

What does Agnibaan’s launch mean for India's space sector and IN-SPACe, particularly private sector participation?

We are just the facilitators; Agnikul has done the heavy lifting. Our objective is to convert India into a global hub for space satellites. Right now, there are only a few small satellite launch vehicles available commercially worldwide.

India has three vehicles that are nearly ready to start commercial service: Skyroot, which did a sub-orbital launch in December 2022; Agnikul now; and the Small Satellite Launch Vehicles (SSLV), which are currently in the process of technology transfer to the private sector. All three vehicles will be owned by the private sector, and we are creating a launch centre at Kulasekharapatnam in Tamil Nadu. This centre will be owned and operated by Isro as a service to the private sector for launching small satellites.

These three vehicles will give us significant capacity and capability to become a global hub for launching small satellites. Therefore, the Agnikul launch is very important for India.

The technology in SSLV and Skyroot (the company to develop India’s first private rocket) is based on solid motors, whereas Agnikul (Agnibaan) is based on a semi-cryogenic engine. It (Agnibaan) involves complex technology, which is why it took them several attempts to get it right. This will give them advantages in terms of turnaround time, as it can be 3D printed fairly quickly, and in terms of overall cost.
 

How significant will the small satellite market be as a revenue source for our space economy?

The launch vehicle itself will generate significant revenue. Each launch vehicle will be valued at around Rs 30-50 crore. If we have 20 launches a year, we are looking at about Rs 1,000 crore from the launches alone.

We also need launch pads and other facilities – all of these will add to the space economy. We hope that a lot of business will come from outside India as well. This will become a significant part of our overall goal of a $44 billion space economy by 2033. Based on our rough estimate, around $25 billion of investment will go into the sector over the next ten years.

When you took charge of IN-SPACe in September 2021, there were 21 space startups in the country. How do you see the sector's growth now?

It has now crossed more than 200. I think more than the numbers what is important is what they are doing. If you look at the top 10 in terms of their work, they are all advancing technology in some area.

Look at Agnikul, Skyroot Aerospace, Pixxel, GalaxEye Space, or Digantara. All of these companies have become well-known in the sector through their technology. I am very pleased with the work done by these deep-tech startups. Each one of these will push the envelope in terms of technology. The second thing happening now is that many of these startups are about to start generating revenue, with projects from both India and abroad.

After the space and foreign direct investment (FDI) policies were put in place, what sort of global response has the industry received?

The industry in India and abroad is pleased with the flexibility the space policy provides to the private sector to participate in India's booming space sector.

FDI is very attractive not just for our own companies seeking investment from abroad, but also for many foreign companies that want to do business in India. The FDI policy will add to the positivity created by the space policy.

We are allowing significant investment through the automatic route, making it very easy for startups to get investment. As of today, no actual investments have happened, but many developments are expected in the next four to six months.

Are there any other policy initiatives in the pipeline?

The only remaining policy initiative is the Space Law, which we are currently drafting. Like any other Act of Parliament, the space law will make the regulatory process part of the parliamentary framework, rather than just a gazette notification. IN-SPACe is formed by notification, but after the law is enacted it will be part of the legal framework of the country.