BENGALURU: Reiterating the country’s vision to reach newer heights in space research, the Union Budget 2023 increased outlay towards space technology and allied areas, which has been welcomed by the sector, especially private players.
The Budget, which was presented by Union Finance Minister Nirmala Sitharaman on February 1, allocated Rs 12,543.91 crore to the Department of Space. While the latter’s expenditure has been cut by 8 per cent in this year’s Budget, from last year’s Rs 13,700 crore, this is still 19 per cent higher than the revised estimate from the previous fiscal. Separately, the Budget estimate for FY 2023-24 towards space technology alone stands at Rs 9,441 crore, compared with Rs 7,927 crore the previous year.
Reflecting on the Budget, Abhishek Raju — Co-founder and Chief Growth Officer of space-tech firm SatSure — said, “Looking at the way the country is growing, the government appears to be in a comfortable position to further push space research and technology. With the latest Budget estimates which are encouraging, the government is facilitating the industry to thrive.” Raju further explained that the government aiding the space sector leaves immense scope for the private industry to contribute towards serving various aspects and requirements.
Meanwhile, the Indian National Space Promotion and Authorisation Centre (IN-Space) — the government’s agency handling approvals, permits, clearances, and licences for the private space industry — has received an increased estimate of Rs 95 crore, which is also being viewed as a step in the right direction.
“In the last two years, a lot of work was being done towards reforming the space sector. Meanwhile, it’s overall a very consistent Budget. IN-Space has got better allocation, which will aid privatisation to grow in India,” said Bellatrix Aerospace Co-founder and COO Yashas Karanam. Experts also state that with the Budget estimates gradually being increased, ISRO can focus more on scientific missions going forward, while the private sector can work towards commercialisation of the sector.
The two years of the pandemic impacted several missions, slowing down the Indian space race. But since then, the growth story has been on a high. Besides ISRO, the private sector has also seen success. To elucidate, presently, there are over 260 private firms actively involved in different parts of India’s space sector value-chain, which together attracted over $150 million in funding in 2022.