Modi emphasised that the government has implemented significant reforms, freeing the sector from its past constraints
On Thursday, Prime Minister Narendra Modi highlighted the growing vibrancy of the space sector and its crucial role in strengthening the nation. He made these remarks while addressing the nation from the Red Fort on the 78th Independence Day in 2024.
Modi emphasised the changes in the space sector, stating that they have implemented significant reforms, freeing the sector from its past constraints. He reportedly added, “Today private satellites and private rockets are being launched. It is a matter of pride that when the policy is right and the intentions are right, then definitely we get the results.”
On June 20, 2024, Jitendra Singh, Union Minister of State for Science & Technology, stated that the number of space start-ups has increased by about 200 times in just two years. He credited this growth to Modi's decision to open the space sector to private companies and encourage strong public-private partnerships.
Opening the space sector to private companies has been hailed as one of the biggest boons for the space sector. In March this year, the Cabinet amended a policy that allows 100 per cent FDI in the space sector. Up to 100 per cent FDI is allowed under the Automatic Route for manufacturing satellite components, systems, subsystems, ground segments and user segments.
The Union Budget also provided a significant boost to the space sector, with Finance Minister Nirmala Sitharaman announcing a Rs 1,000 crore venture capital fund for India's space technology start-ups.
As per data platform Tracxn, funding for space start-ups increased from $118 million in 2022 to $126 million funding in 2023, indicating a seven per cent increase. As of 2024, July, the funding is $10.8 million. However, most of these are from early-stage funding. The data platform indicates that while there is growth in early-stage and seed-stage funding, late-stage funding has yet to see similar growth.
Some examples of space start-ups in India include Agnikul Cosmos. Dhruva Space, Skyroot Aerospace and others. Space start-up Agnikul in May 2024 created history in the country after it launched the world’s first 3D-printed rocket engine. After the launch, Modi posted on X, “The successful launch of the Agnibaan rocket powered by the world’s first single-piece 3D-printed semi-cryogenic engine is a momentous occasion for India’s space sector and a testament to the remarkable ingenuity of our Yuva Shakti.”
During his speech, the Prime Minister also said that lots of reforms have been made to boost the infrastructure of the country in the last ten years. He stated that his government has already built four crore houses, with an additional three crore currently in progress. Additionally, Modi mentioned that in the next five years, the government will create 75,000 medical seats. He reportedly said, “Around 25,000 youths every year go abroad for medical education, and they go to such countries. I get surprised when I hear about them. So we have decided, 75,000 new seats will be created in the medical line in the next five years.”