Space Startups - Policies, Procedures and Prospects in India

Space Startups - Policies, Procedures and Prospects in India. India has been making significant strides in fostering the growth of space-based startups. The space sector recorded a funding growth of 198.67% in the year 2021. With over 100 startups in the space industry and a host of new policies, the Indian space sector has been growing astronomically. India has launched itself into a propelling journey with its indigenous launch vehicles, new developments in satellites, propulsion engines and sensing improvements. The Indian Space Policy 2023 unveils the vision of the Indian government to encourage private companies to carry out end-to-end activities in the space sector.
In this post, Compliance Calendar traces the policies and procedures for startups in the space-tech sector while also outlining the prospects for foreign space-tech companies in India.
A Successful Space Startup Industry in India - Latest developments
The space sector in India has been a leading sunrise industry ever since the government announced India’s first interplanetary mission, MOM - The Mars Orbiter Mission in 2013. We became the fourth country to send a spacecraft to Martian orbit, and created history with a per kilometre cost o f only Rs.7 , even cheaper than a n auto.
With the recent opening of the space industry to private players, here are a few examples of successful startups that are taking space based innovation to the next level.

Earth imaging capabilities: With liberalization of geospatial technology which helps in satellite based mapping o f Earth, startups like Pixxel and Skyroot Aerospace are building advanced imaging systems.

Private launch vehicles and launch facilities: Last year, Skroot Aerospace launched India’s first privately developed rocket Vikra m-S. The startup Te a mIn d us is working o n landing technology missions and has raised over $2 0 million for several missions, including a partnership with ISRO for a commercial launch. Agn ikul Cosmos, another startup is developing its own small-lift vehicles and rockets.

Commercial space solutions: Dhruva Space, another leading startup is engaged in developing space technology solutions for businesses that includes everything from ground station maintenance to satellite launch and construction.

Delivering in tern et connectivity: With rural India rapidly needing advanced internet infrastructure and connectivity, and auctioning of newer bands of radio, companies like Astro me are engaged in using BharatNet fibre for high-speed internet to deliver 4G and 5G by using satellites. Globally, companies like Star Link and Jeff Bezos’s Project Kuiper are also engaged in using innovative space tools for high speed in ternet solutions.

Sectoral projections for the space industry

The space industry is projected to increase at 48 % CA Grover the next five years to reach USD 50 billion. Venture capitalists and private equity firms have invested about 110 million Dollar in India’s space sector in 2 0 2 2 .

Budgetary allocation: The government in India had earmarked RS. 12,544 crores for the Department of Space in the Union Budget 2023-24. A significant portion of this includes grants for sponsored research in space by academia and industry, sensor payload, small satellites development, climate change related studies.

Policies for Space and Space-tech industry in India
The Indian government has implemented various policies and initiatives to support the development and operation of startups in the space sector.

Foreign agreements: ISRO has signed six agreements with four countries for launching foreign satellites between 2021 -23 . These launches can yield over 141 million Dollar in revenues.

Space Activities Bill: The Indian government is working on a Space Activities Bill, which aims to regulate the activities of private entities in outer space and promote a conducive environment for space startups. The bill addresses aspects such as licensing, liability, and safety requirements for space activities.

Space Technology Incubation Centres: In order to encourage innovative ideas for research and space technology, ISRO has set up Space Technology Incubation Centres in six regions of the country. These centres provide infrastructure, research and development support for space projects.

Strong aviation and defence sector in India: India has a strong aviation sector in the country. With rising foreign investments in the aviation and defence sectors in India - both sectors allied as well as complementary to the growth of space industry, India supports a vibrant ecosystem for space based startups.

Creation of Space Technology Parks (STPs) : The Indian government has planned to establish Space Technology Parks to provide infrastructure and support services to space-based startups. Just like IT, industrial parks, the space technology parks aim to create a n ecosystem that encourages innovation and collaboration in the space sector. For in sta n ce ,the Gujarat government is developing a space park for satellite manufacturing. This would boost indigenous manufacturing, exports and India’s commercial abilities in the space sector.

DRDO’s Technology Development Fund (TDF): The Indian Space Research Organisation (ISRO) and DRD O operate the TDF, which provides financial support to startups and industries for developing technologies and products that have potential aero -space and defence applications. This includes funding up to Rs. 5 0 crores, while also including assistance for collaborations on TDF projects. This also includes grants for:

- Joint ownership of IPR with DRDO and ISRO
- Sales opportunities to subcontractors
- Assistance for development o f prototypes
- Funding support for incubation
- Opportunities to create partnerships with academia
Commercial Space agencies and Regulatory Bodies for Space in India Indian National Space Promotion and Authorization Center (IN-SPACe):
IN-SPACe is a n independent nodal agency set up b y the Indian government to regulate and promote the participation of private companies, including startups, in space activities. IN-SPACe aims to provide a simplified regulatory environment, with single window clearances for private entities for space launches, satellite services etc.
IN-SPACe accords approvals and requisite authorisations for the following space activities: 
- establishment and/or operations of space object(s);
- launch and operation of launch vehicles including sub-orbital launches;
- establishment and operation of launch pads which could b e self-owned, leased orbea mobile platform.
- planned reentry of Space Objects with or without recovery.
- establishment and operation of TT&C Earth Stations;
- establishment and operation of SCC s and/or satellite data reception station(s).
- dissemination of high resolution space-based earth observation data. Any ground sample distance less than 30 cm requires authorisation by INSPACe due to national security issues.
- in-orbit sale/ purchase/ transfer of Space Objects.
The issuance of guidelines for meeting safety and security requirements for space objects and guidelines to address liability aspects arising out of potential damages due to the space activities are also under the jurisdiction o f IN-SPACe.
ISRO - Antrix : Antrix was established as the marketing division of ISRO. It aims to promote and commercially utilise space products, provide technical consultancy services, and transfer technologies developed by ISRO. It also strives to foster the growth of space-related industrial capabilities in India.
New Space India Limited (NSIL) : NSIL is a government-owned company established in 2019 to facilitate commercial activities in the Indian space sector under the Department of Space. NSIL acts a s a nodal agency for supporting and promoting space startups in India. It is also responsible for production of Polar and Small Satellite Launch Vehicles (PSLVs and SSLVs), building satellites and transfer of technology. Activities such a s manufacturing, lease, or procuring space components, technologies, platforms and other assets from private or public sector, on sound commercial principles are under the jurisdiction of NSIL.
FDI in Space Sector Startups in India
Currently FDI in the space sector is allowed up to 100% in the area of Satellite establishment and operations via the government route. While there is no official clarity o n FDI limits in other specific areas of space industry, it is speculated that the Indian government will soon come up with a comprehensive and liberal FDI policy for attracting investments in the space sector in India.
Emerging Areas of Space-tech collaborations
With several big ticket and exciting projects in the line-up such as - Ganganyaan (human space flight mission), Chandrayaan -3 launch for the moon, Shukra ya a n -1 (Venus Mission), Aditya L-1 mission (for studying Sun’s Corona) India is all set to spread its wings in space. 
Opportunities are ripe for startups engaged in:
- Small Satellite launches
- Ground-based station monitoring services
- International collaborations for space launches
- Climate, meteorology and weather data advisory
- Development of innovative, clean fuel, solar and nuclear power for space exploration - Companies engaged in minimising space debris
- Scientific equipments development, research and production
- Advanced sensors, 3 D printers
- Hypersonic systems, innovative propulsion systems
- Space based quantum communication
In order to establish a successful space startup in India, it is essential to obtain requisite licences from ISRO and INSPACe, comply with insurance norms, obtain approvals from Department of Space and act in accordance with latest policies in the Indian space sector. Compliance Calendar aims to encourage the growth of innovative space-based startups. With our expertise in niche markets like space, defence and technology, reach out to us for the best advice on compliance, funds and secretarial services for your space startup.

India has been making significant strides in fostering the growth of space-based startups. The space sector recorded a funding growth of 198.67% in the year 2021. With over 100 startups in the space industry and a host of new policies, the Indian space sector has been growing astronomically. India has launched itself into a propelling journey with its indigenous launch vehicles, new developments in satellites, propulsion engines and sensing improvements. The Indian Space Policy 2023 unveils the vision of the Indian government to encourage private companies to carry out end-to-end activities in the space sector.

In this post, Compliance Calendar traces the policies and procedures for startups in the space-tech sector while also outlining the prospects for foreign space-tech companies in India.

A Successful Space Startup Industry in India - Latest developments

The space sector in India has been a leading sunrise industry ever since the government announced India’s first interplanetary mission, MOM - The Mars Orbiter Mission in 2013. We became the fourth country to send a spacecraft to Martian orbit, and created history with a per kilometre cost o f only Rs.7 , even cheaper than a n auto.

With the recent opening of the space industry to private players, here are a few examples of successful startups that are taking space based innovation to the next level.

Earth imaging capabilities: With liberalization of geospatial technology which helps in satellite based mapping o f Earth, startups like Pixxel and Skyroot Aerospace are building advanced imaging systems.
Private launch vehicles and launch facilities: Last year, Skroot Aerospace launched India’s first privately developed rocket Vikra m-S. The startup Te a mIn d us is working o n landing technology missions and has raised over $2 0 million for several missions, including a partnership with ISRO for a commercial launch. Agn ikul Cosmos, another startup is developing its own small-lift vehicles and rockets.
Commercial space solutions: Dhruva Space, another leading startup is engaged in developing space technology solutions for businesses that includes everything from ground station maintenance to satellite launch and construction.
Delivering in tern et connectivity: With rural India rapidly needing advanced internet infrastructure and connectivity, and auctioning of newer bands of radio, companies like Astro me are engaged in using BharatNet fibre for high-speed internet to deliver 4G and 5G by using satellites. Globally, companies like Star Link and Jeff Bezos’s Project Kuiper are also engaged in using innovative space tools for high speed in ternet solutions.

Sectoral projections for the space industry

The space industry is projected to increase at 48 % CA Grover the next five years to reach USD 50 billion. Venture capitalists and private equity firms have invested about 110 million Dollar in India’s space sector in 2 0 2 2 .
Budgetary allocation: The government in India had earmarked RS. 12,544 crores for the Department of Space in the Union Budget 2023-24. A significant portion of this includes grants for sponsored research in space by academia and industry, sensor payload, small satellites development, climate change related studies.

Policies for Space and Space-tech industry in India

The Indian government has implemented various policies and initiatives to support the development and operation of startups in the space sector.

Foreign agreements: ISRO has signed six agreements with four countries for launching foreign satellites between 2021 -23 . These launches can yield over 141 million Dollar in revenues.
Space Activities Bill: The Indian government is working on a Space Activities Bill, which aims to regulate the activities of private entities in outer space and promote a conducive environment for space startups. The bill addresses aspects such as licensing, liability, and safety requirements for space activities.
Space Technology Incubation Centres: In order to encourage innovative ideas for research and space technology, ISRO has set up Space Technology Incubation Centres in six regions of the country. These centres provide infrastructure, research and development support for space projects.
Strong aviation and defence sector in India: India has a strong aviation sector in the country. With rising foreign investments in the aviation and defence sectors in India - both sectors allied as well as complementary to the growth of space industry, India supports a vibrant ecosystem for space based startups.
Creation of Space Technology Parks (STPs) : The Indian government has planned to establish Space Technology Parks to provide infrastructure and support services to space-based startups. Just like IT, industrial parks, the space technology parks aim to create a n ecosystem that encourages innovation and collaboration in the space sector. For in sta n ce ,the Gujarat government is developing a space park for satellite manufacturing. This would boost indigenous manufacturing, exports and India’s commercial abilities in the space sector.
DRDO’s Technology Development Fund (TDF): The Indian Space Research Organisation (ISRO) and DRD O operate the TDF, which provides financial support to startups and industries for developing technologies and products that have potential aero -space and defence applications. This includes funding up to Rs. 5 0 crores, while also including assistance for collaborations on TDF projects. This also includes grants for:

- Joint ownership of IPR with DRDO and ISRO

- Sales opportunities to subcontractors

- Assistance for development o f prototypes

- Funding support for incubation

- Opportunities to create partnerships with academia

Commercial Space agencies and Regulatory Bodies for Space in India Indian National Space Promotion and Authorization Center (IN-SPACe):

IN-SPACe is a n independent nodal agency set up b y the Indian government to regulate and promote the participation of private companies, including startups, in space activities. IN-SPACe aims to provide a simplified regulatory environment, with single window clearances for private entities for space launches, satellite services etc.

IN-SPACe accords approvals and requisite authorisations for the following space activities:

- establishment and/or operations of space object(s);

- launch and operation of launch vehicles including sub-orbital launches;

- establishment and operation of launch pads which could b e self-owned, leased orbea mobile platform.

- planned reentry of Space Objects with or without recovery.

- establishment and operation of TT&C Earth Stations;

- establishment and operation of SCC s and/or satellite data reception station(s).

- dissemination of high resolution space-based earth observation data. Any ground sample distance less than 30 cm requires authorisation by INSPACe due to national security issues.

- in-orbit sale/ purchase/ transfer of Space Objects.

The issuance of guidelines for meeting safety and security requirements for space objects and guidelines to address liability aspects arising out of potential damages due to the space activities are also under the jurisdiction o f IN-SPACe.

ISRO - Antrix : Antrix was established as the marketing division of ISRO. It aims to promote and commercially utilise space products, provide technical consultancy services, and transfer technologies developed by ISRO. It also strives to foster the growth of space-related industrial capabilities in India.

New Space India Limited (NSIL) : NSIL is a government-owned company established in 2019 to facilitate commercial activities in the Indian space sector under the Department of Space. NSIL acts a s a nodal agency for supporting and promoting space startups in India. It is also responsible for production of Polar and Small Satellite Launch Vehicles (PSLVs and SSLVs), building satellites and transfer of technology. Activities such a s manufacturing, lease, or procuring space components, technologies, platforms and other assets from private or public sector, on sound commercial principles are under the jurisdiction of NSIL.

FDI in Space Sector Startups in India

Currently FDI in the space sector is allowed up to 100% in the area of Satellite establishment and operations via the government route. While there is no official clarity o n FDI limits in other specific areas of space industry, it is speculated that the Indian government will soon come up with a comprehensive and liberal FDI policy for attracting investments in the space sector in India.

Emerging Areas of Space-tech collaborations

With several big ticket and exciting projects in the line-up such as - Ganganyaan (human space flight mission), Chandrayaan -3 launch for the moon, Shukra ya a n -1 (Venus Mission), Aditya L-1 mission (for studying Sun’s Corona) India is all set to spread its wings in space.

Opportunities are ripe for startups engaged in:

- Small Satellite launches

- Ground-based station monitoring services

- International collaborations for space launches

- Climate, meteorology and weather data advisory

- Development of innovative, clean fuel, solar and nuclear power for space exploration - Companies engaged in minimising space debris

- Scientific equipments development, research and production

- Advanced sensors, 3 D printers

- Hypersonic systems, innovative propulsion systems

- Space based quantum communication

In order to establish a successful space startup in India, it is essential to obtain requisite licences from ISRO and INSPACe, comply with insurance norms, obtain approvals from Department of Space and act in accordance with latest policies in the Indian space sector. Compliance Calendar aims to encourage the growth of innovative space-based startups. With our expertise in niche markets like space, defence and technology, reach out to us for the best advice on compliance, funds and secretarial services for your space startup.