7 October 2024 : PIB Summary For UPSC

1. Rs 1,000 cr earmarked for Venture Fund to Space StartUps, says union Minister Jitendra Singh

(Source – https://pib.gov.in/PressReleseDetail.aspx?PRID=2062671&reg=3&lang=1 )

Topic: GS3 – Indian Economy

Context

The Indian government has announced significant developments in the space sector, highlighting a dramatic rise in private sector involvement and startup growth. This initiative aims to strengthen India’s position in global space exploration and technology through substantial investments and policy support.

Steps Taken by the Government

• Opening Space Sector to Private Players: Initiated four years ago, allowing private participation, leading to the establishment of New India Space Limited (NISL) and IN-SPACe India as a regulatory interface.
• 100% Foreign Direct Investment (FDI): This provision has boosted entrepreneurial initiatives, attracting global investment into the Indian space ecosystem.
• Venture Fund Allocation: A Rupees 1,000 crore fund has been earmarked for space StartUps, promoting innovation and growth.
• Upcoming Gaganyaan Mission: The final test flight with Vyom Mitra is planned for late 2024, paving the way for sending the first Indian human to space in 2025.

Results

• Increase in Space StartUps: The number of StartUps in the space sector surged from 1 to over 200, showcasing significant growth and interest.
• The Startup Surge: The number of startups in India has surged from 350 in 2014 to over 150,000, positioning the country as the third-largest startup ecosystem globally.
• Technological Advancements: The successful launch of Chandrayaan-3, reaching the Moon’s South Pole, positions India as a leader in space exploration.
• Contribution to Economy: Space StartUps are expected to play a vital role in enhancing India’s economic prospects, contributing to the transition from the “fragile five” to being among the “first five” economies.
• Broader Impact of Space Technology: Applications extend beyond launches to sectors like agriculture, urban development, healthcare, and infrastructure, enriching the lives of citizens.

Practice Question:  Discuss the implications of allowing 100% foreign direct investment in India’s space sector and its potential impact on the growth of space startups. How can these developments contribute to India’s strategic objectives in space exploration? (150 Words /10 marks)