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Government Unveils Multi-Pronged Strategy to Boost India's Space Manufacturing Ecosystem

Government Unveils Multi-Pronged Strategy to Boost India's Space Manufacturing Ecosystem

The Government has outlined a comprehensive strategy to strengthen India's space technology manufacturing ecosystem by promoting private sector participation, encouraging investments, facilitating technology transfer, and developing critical infrastructure. The initiatives are aimed at transforming India into a global hub for space technology production while accelerating the growth of indigenous capabilities.

In a written reply in the Rajya Sabha on Thursday, Minister of State (Independent Charge) for Science & Technology, Earth Sciences, and Minister of State for the Prime Minister's Office, Personnel, Public Grievances and Pensions, Atomic Energy and Space, Dr. Jitendra Singh, detailed a series of policy measures and schemes introduced to boost space manufacturing and innovation across the country.

A key reform has been the introduction of a liberalized Foreign Direct Investment (FDI) policy for the space sector, enabling greater global investment in India's rapidly expanding space industry. The government has also implemented a discounted pricing policy that allows Non-Government Entities (NGEs) to access the Indian Space Research Organisation (ISRO)'s facilities at affordable rates, encouraging greater participation from private companies and startups.

To strengthen the financial ecosystem, the government has established a ₹1,000 crore Venture Capital Fund dedicated to supporting space startups. Complementing this initiative is the ₹500 crore Technology Adoption Fund (TAF), designed to accelerate the development, demonstration, and commercialization of indigenous space technologies.

The government is also facilitating access to ISRO's infrastructure, technical expertise, and mentorship, helping private companies leverage decades of India's space research and technological advancements. Skill development initiatives have been launched to create a workforce equipped to meet the evolving demands of the fast-growing space sector.

Recognizing the need for robust testing infrastructure, a dedicated Technical Centre has been established to provide affordable testing, validation, and simulation facilities for space systems. Additionally, industries are being encouraged to commercialize ISRO-developed technologies through structured technology transfer mechanisms.

To promote innovation and in-orbit validation, the government is providing opportunities for startups and private companies to test new technologies using the PSLV Orbital Experimental Module (POEM) platform. Another significant initiative, "Satellite Bus as a Service (SBaaS)," aims to develop indigenous satellite platform capabilities while reducing development timelines and enabling faster deployment of satellites.

The Centre has also encouraged state governments to establish dedicated manufacturing clusters and common testing facilities to strengthen the domestic space manufacturing ecosystem and create regional hubs for space technology development.

According to the government, all initiatives of the Indian National Space Promotion and Authorization Centre (IN-SPACe) are implemented on a pan-India basis. Therefore, state-wise and gender-wise data related to beneficiaries are not maintained.

The government noted that India's private space sector remains in a nascent stage of development. Consequently, current interventions are focused on creating foundational infrastructure, facilitating technology transfer, promoting indigenous technology development, and attracting investments that can catalyse long-term growth.

To ensure wider participation, IN-SPACe regularly conducts industry interaction meetings, Space Technology Adoption and Awareness Workshops (SAAW), task-specific webinars, stakeholder consultations, conferences, exhibitions, and periodic publications. These outreach programmes are designed to engage startups, MSMEs, academia, industry, and other stakeholders while spreading awareness about policy reforms, funding opportunities, regulatory frameworks, and capacity-building programmes.

The government's initiatives reflect a long-term vision of building a globally competitive and self-reliant space industry by fostering innovation, strengthening manufacturing capabilities, and creating an enabling ecosystem for private enterprises to contribute to India's expanding space ambitions.

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