Hindu Editorial Analysis : 26-July-2024

In the recent Union Budget for 2024-25, the Department of Space received an 18% increase in funding, primarily aimed at developing advanced space technologies. This investment marks a significant step forward in India’s growing space economy.

India’s Space Journey

India’s space journey began with the launch of Aryabhata, the country’s first satellite, in 1975. Since then, the Indian Space Research Organisation (ISRO) has achieved remarkable milestones, including:

  • Chandrayaan: India’s lunar mission.
  • Mangalyaan: The successful Mars orbiter mission.

These achievements have greatly contributed to scientific research and practical applications.

Current Valuation and Future Projections

India’s space economy is currently valued at approximately ₹6,700 crore (around $8.4 billion), representing about 2% of the global space economy. However, the Indian National Space Promotion and Authorization Centre (IN-SPACe) projects that by 2033, this valuation could reach ₹35,200 crore (about $44 billion), aiming for an 8% global market share by then and 15% by 2047.

Strategic Vision and Key Focus Areas

IN-SPACe has outlined a ten-year vision focusing on several key areas:

  • Demand Generation: Increasing demand for space services.
  • Local Manufacturing: Promoting indigenous production of satellites and launch vehicles.
  • Infrastructure Development: Building essential facilities for space activities.
  • Regulatory Framework: Establishing clear guidelines for private sector participation.

Key Segments of the Space Ecosystem

India’s space ecosystem includes:

  • Space-for-Earth: Applications like weather forecasting and remote sensing.
  • Access-to-Space: Enabling satellite launches.
  • Space-for-Space: Scientific research and exploration.

Challenges Facing the Space Sector

While the future looks promising, there are challenges to address:

  • Global Competition: Competing effectively in the international market.
  • Private Sector Participation: Encouraging substantial investment from private companies.
  • Technology Development: Innovating cutting-edge technologies like reusable rockets.
  • Regulatory Issues: Simplifying licensing and compliance for private players.
  • Infrastructure Needs: Significant capital is required for developing facilities.
  • Talent Development: Attracting skilled professionals to the industry.
  • Risk Management: Establishing robust insurance mechanisms for missions.

Major Reforms in the Space Sector

The Indian Space Policy 2023 outlines the roles of ISRO, New Space India Limited (NSIL), and the private sector, promoting collaboration among research, academia, and industry. Furthermore, tax incentives and Foreign Direct Investment (FDI) regulations have been updated to encourage growth.

Rise of Space Start-Ups

The number of space start-ups in India has surged from just one in 2014 to 189 in 2023. Investments in these start-ups reached $124.7 million in 2023, indicating a growing interest in the space sector.

Why In News

Recently, the Department of Space received an 18% increase in its budget for 2023-24, as outlined in the Union Budget for 2024-25, with the majority of these funds allocated to the advancement of space technologies, signaling a strong commitment to enhancing India’s capabilities in this vital sector. This investment reflects the government’s recognition of the strategic importance of space exploration and technology for national development.

MCQs about The Growth of India’s Space Sector

  1. What percentage increase did the Department of Space receive in the Union Budget for 2024-25?
    A. 10%
    B. 15%
    C. 18%
    D. 20%
    Correct Answer: C. 18%
    Explanation: The Department of Space received an 18% increase in its budget for 2023-24.
  2. What is the current valuation of India’s space economy?
    A. ₹2,400 crore
    B. ₹6,700 crore
    C. ₹35,200 crore
    D. ₹88,000 crore
    Correct Answer: B. ₹6,700 crore
    Explanation: India’s space economy is valued at approximately ₹6,700 crore (around $8.4 billion).
  3. Which of the following is NOT a focus area outlined by IN-SPACe for its ten-year vision?
    A. Demand Generation
    B. Local Manufacturing
    C. Space Tourism
    D. Infrastructure Development
    Correct Answer: C. Space Tourism
    Explanation: The essay lists demand generation, local manufacturing, and infrastructure development as key focus areas for IN-SPACe but does not mention space tourism.
  4. What is the projected global market share India aims to achieve in its space economy by 2033?
    A. 2%
    B. 5%
    C. 8%
    D. 15%
    Correct Answer: C. 8%
    Explanation: IN-SPACe projects that India’s space economy could capture about 8% of the global market share by 2033.

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