New Delhi: Finance Minister Nirmala Sitharaman has presented the first budget of Prime Minister Narendra Modi’s third term. In his seventh budget, Sitharaman announced an increase of Rs 1,000 crore for the space economy. That is, the central government will provide 1000 crore rupees for space related studies and missions. Let’s find out what is the space economy and why is the Indian government investing in it?
Research is very important for the development of the country. In this context, the government has announced the National Research Fund for research in the budget for innovation, research and prototype development. Accordingly, Rs 1 lakh crore has been allocated for research and development conducted by the private sector. Similarly, the economy in the space sector is estimated to grow 5 times in the next 10 years. In view of this, a venture capital fund of 1000 crores has been kept. This will accelerate the development and commercialization of the space industry.
What is the Space Economy?
The space economy is the use of all those activities and resources that benefit human during the exploration, understanding, management and use of space. Apart from making satellites for scientific missions, it also includes space tourism. The infrastructure and services associated with satellite communications systems that enable global connectivity, transmission and data transfer are counted in the space economy.
India’s Space Economy-
According to IN-SPACe estimates, the Indian space economy is now valued at $8.4 billion, or over Rs 70,000 crore. It will increase to Rs 3.68 lakh crore in the next decade. Thus India’s share in the global space economy will increase from 2% to 8%.
The Indian government is providing its own level of support to indigenous startups to promote the space economy. In 2020, the government opened up the space sector to the private sector as part of a historic reform. In October 2023, Science and Technology Minister Jitendra Singh inaugurated the ‘Max-Q Campus’, the new headquarters of a startup called SkyRot Aerospace at GMR Aerospace and Industrial Park in South Hyderabad.
Skyrot Aerospace is the first space startup to launch a domestic rocket from the ISRO station in Sriharikota last year after the space sector was opened up to private entrepreneurs three years ago. This startup has indigenously developed the Vikram-1 rocket. Vikram-I will be Skyrotor’s second rocket. Skyrocket now has the ability to develop cost-effective rockets on demand.
Double the profit invested-
The cost of the space economy is increasing rapidly every year. According to the estimates of the World Economic Forum, the space economy will reach 1.8 trillion dollars by 2035, which will increase by 630 billion dollars compared to 2023. This economy will grow at an average growth rate of 9% every year.
Not only financially, investments in space will provide long-term benefits to any country’s government. From disaster warning and climate monitoring to improved humanitarian response, space will play an important role in mitigating the world’s challenges.
Many benefits are coming from the space sector-
There is a general perception about the space sector that it primarily brings scientific benefits. But the benefits of common man are as deeply related to space as scientists. Currently, more than 160 satellites monitor the Earth from space to assess the effects of global warming and detect activities such as illegal logging. In addition, there are hundreds of satellites that are helping government agencies deal with deforestation, coastal erosion and other climate-related natural disasters.
Satellite data is being used to monitor crop growth and potential threats to crops such as drought, floods or pests. Governments working with private sector companies can use satellite imagery and data to gather intelligence on adversaries. For example, the RISAT-2B satellite is used to monitor the activities going on along Pakistan’s border and prevent infiltration attempts by terrorists from across the border.
