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A GROWING & EXPANDING SECTOR

SP’s Aviation

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Issue 5, 2024

While the space sector is on an upward trajectory with the Indian Space Policy, FDI liberalisation and the recent authorisation guidelines, the success of these initiatives hinges on a clear legal and regulatory framework to support the industry.

- AYUSHEE CHAUDHARY

A GROWING & EXPANDING SECTOR

INDIA’S BURGEONING SPACE SECTOR IS RAPIDLY EXPANDING, brimming with promising potential. Since the government’s landmark decision to open the space industry to private players in 2020, the sector has experienced quite unprecedented growth, success, and organisational development. 

Although there is still a long road ahead, initiatives are consistently being introduced hoping to streamline industry processes, improve accessibility, and enhance the ease of doing business in this sector that’s growing nearly at the speed of light. The latest of these initiatives is the unveiling of norms, guidelines, and procedures (NGP) by the space regulator INSPACe. These measures aim to effectively implement the Indian Space Policy 2023, inviting private players to engage in activities ranging from building and launching satellites to setting up ground stations and sharing remote sensing data.

The Indian Space Policy, introduced last year, aims to integrate the private sector into the space industry and stimulate their active participation. Although the policy has yet to be formalised into binding law, it has already spurred significant growth, with numerous startups entering the ecosystem and existing space companies securing substantial funding. Additionally, the recent introduction of the NGP follows the government’s liberalisation of the Foreign Direct Investment (FDI) regime for the sector, permitting up to 100 per cent FDI via the automatic route for specific sub-segments within the space industry. This progressive move is set to attract more foreign investment and drive further advancements in India’s space endeavors.

Here’s a brief look back at these advancements and how the Indian space industry is fairing.

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