Startups in the space tech sector face a critical hurdle due to lack of accessible and affordable testing facilities, said Lt Gen (retired) AK Bhatt, director general, Indian Space Association (ISPA), adding that a full regulatory framework remains essential to meet the industry’s aspirations.
“The availability of testing facilities at competitive rates is crucial,” Bhatt said, while speaking at the Indian Space Conclave 2024. He also underscored that high costs and limited facilities are pushing startups to conduct testing across multiple locations in the country, creating an operational burden.
“The aspiration would be looking at places like Bangalore, Chennai or Hyderabad, where industries are there so that they do not have to make equipment for testing all over the country, because that itself otherwise becomes a challenge,” Bhatt said.
On November 4, ET had reported that while India has about 200 startups focused on technologies related to space, the sector is grappling with significant challenges, particularly in the manufacturing of critical components.
Bhatt also pointed out that while regulatory advancements have been made in recent years to support space startups, including guidelines on foreign direct investments and the rollout of the Indian Space Policy in 2023, there was room for more.
“We will ultimately (need to) look at a space activity bill, where the regulator is defined, and most importantly, the insurance part is covered,” Bhatt noted.
Bhatt also highlighted India’s target to increase its share in the global space economy from 2% to 10%, pointing to the rapid growth of space-focused startups like Skyroot Aerospace, which expanded from 50 to 250 regions.
On October 24, the Union Cabinet approved a Rs 1,000-crore venture capital fund under the IN-SPACe programme to support space sector- focused startups in India.
The proposed fund will have a deployment period of up to five years from the start date of its operations. Each year, the average amount deployed is expected to range between Rs 150 crore and Rs 250 crore, depending on available investment opportunities and the needs of the fund.
Bhatt underscored the need to foster demand for space applications within various ministries, an initiative launched by the Prime Minister in 2017. “The aspirations of the industry will continue,” he said, stressing the importance of aligning demand and supply for sustained growth.