The Indian space economy is currently valued at USD 8.4 billion, with the private sector beginning to make its presence felt by developing satellites and launch systems, aiming for significant growth in the next decade.
Production-linked incentive scheme for space sector
Pixxel Space co-founder and Chief Executive Officer Awais Ahmed told news agency PTI, "Probably something like a production-linked incentive scheme for the space sector would be helpful from a budget standpoint. A lot of infrastructure development needs to be done for space as well. So, if it can be incentivised for companies to set local manufacturing, that would be great."
Lt Gen A K Bhatt (retd), Director General of the Indian Space Association (ISpA), has called for import exemptions, a reduction in GST, and tax holidays for a specified period to support the industry's growth.
He said the ISpA also expected the government to allocate more budget for various departments for space-based applications and cited the example of the Ministry of Road Transport which plans to use satellite data for collection of toll on highways. "In general we would be looking at a lot of money coming for science and space missions," Kshitij Gokul, co-founder and Chief Technology Officer of Pixxel Space, said.
Bhatt said the government has approved a 52-satellite constellation for the defence sector of which 31 satellites will be built by the private sector.
Increase space budget up to Rs 40,000-50,000 crore
The Satcom Industry Association (SIA-India) has demanded for a significant increase in the space budget, proposing a rise to Rs 40,000-50,000 crore, to narrow the funding gap with countries like Japan and China.
"This budget increase should prioritise key areas such as advanced satellite technologies, space mining, advanced space safety technologies, enhanced cyber capabilities for space security, space debris management, strategic space initiatives like green propulsion systems, reusable launch technologies, and quantum satellite communication technologies," Subbarao Pavuluri, president of SIA-India, said.
SIA-India also strongly advocated for the creation of a Space Economy Task Force within the Finance Ministry. This would ensure financial alignment with the 30-year growth plan and introduce fiscal incentives such as tax holidays and R&D subsidies to foster industry growth.
"The export of Indian satellites and launch services should be incentivised with strategic bilateral agreements and tax credits," Anil Prakash, Director General, SIA-India said.
"We also propose the development of a comprehensive space cyber security framework, supported by a dedicated fund, drawing inspiration from international standards. This framework would encompass the development of real-time threat intelligence platforms and funding for R&D in space cyber security technologies," Prakash said.
(With PTI inputs)
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