What's Happening?
The Satcom Industry Association-India (SIA-India) has proposed a significant increase in India's national space budget, alongside the creation of specialized manufacturing incentives and long-term funding
frameworks. These recommendations were submitted to the finance ministry, Department of Space (DoS), and the Indian National Space Promotion and Authorisation Centre (IN-SPACe). SIA-India, in collaboration with KPMG, highlighted that India's current public spending on space, approximately 0.04% of GDP, is insufficient compared to global standards. The association suggests a phased budget increase, starting with an allocation of Rs 18,000 crore, escalating to Rs 36,000 crore over the next four years. This increase aims to align India with the 0.12% spending level of leading spacefaring nations, supporting launch capabilities, satellite constellations, and new testing infrastructure. SIA-India also emphasized the need to classify satellite communications, Earth observation, and NavIC-based systems as national critical infrastructure, advocating for priority protection and multi-year capital planning.
Why It's Important?
The proposed budget increase and incentives are crucial for India's aspirations to become a leader in the global space economy. By investing in long-term capabilities, India can enhance its secure communications, navigation, climate systems, and disaster resilience, all of which are increasingly reliant on space assets. The classification of space systems as critical infrastructure would ensure their protection and support the country's strategic goals in the Indo-Pacific region. Additionally, the introduction of a hybrid Production Linked Incentive (PLI) scheme tailored for space components could reduce India's dependency on imports for critical technologies like radiation-hardened electronics and precision optics. These measures could stimulate domestic manufacturing, foster innovation, and create a robust ecosystem for space technology development.
What's Next?
If the recommendations are adopted, India could see a substantial boost in its space capabilities and infrastructure. The government may need to implement new policies and frameworks to support the proposed budget increases and incentives. This could involve setting up clean-room inspection zones at major ports to protect sensitive hardware and establishing new public-private testing hubs. The success of these initiatives would likely depend on the collaboration between government agencies, private sector players, and international partners. The potential expansion of the NavIC capability and the establishment of a National Satellite Connectivity Mission could further enhance India's position in the global space market.
