Space Parks

What are Space Parks?

  • Space Parks are dedicated industrial and research zones designed to promote the manufacturing, development, and commercialization of space-related technologies.
  • These parks aim to strengthen the indigenous space ecosystem by providing specialized infrastructure, government support, and industry collaboration for space startups, research institutions, and large aerospace companies.

Government Initiative on Space Parks

  • The central government is revisiting the feasibility of dedicated space industrial areas for manufacturing and development of space technology.
  • The proposal aims to increase local manufacturing of satellite components, launch vehicles, and geospatial monitoring systems.
  • The Department of Telecommunications (DoT) and Ministry of Electronics and IT (MeitY) are involved.
  • A PLI (Production Linked Incentive) scheme is not planned currently, but other incentives are being considered.
  • Tax benefits similar to Special Economic Zones (SEZs) have been recommended, though linking production to exports is not feasible at this stage.

Significance for the Indian Space Sector

  • The Indian space economy was valued at $8.4 billion in 2023, making up 2% of the global space market .
  • The government’s goal is to reach $44 billion by 2033 , with $11 billion in exports
    • , increasing India’s share to 7- 8% of the global space market .
  • The global space economy is projected to grow from $630 billion (2023) to $1.8 trillion (2035) , almost double the rate of global GDP growth .
  • The initiative aligns with the Atmanirbhar Bharat (Self-reliant India) vision and aims to create downstream revenue streams and employment opportunities .

Role of Startups & Investment in the Space Sector

  • Over 250 startups currently operate in various space tech segments in India.
  • In October 2024, the Cabinet approved a ₹1000 crore Venture Capital Fund under IN-SPACe (Indian National Space Promotion and Authorization Center).
  • The fund aims to support 40 startups in the next 5 years , boost domestic R&D, and ensure Indian space companies stay headquartered in India.
  • Large anchor investments by defense and aviation industries in space parks are expected to create an ecosystem for startups .

Challenges in Establishing Space Parks

  • No major precedent in India for dedicated space parks.
  • Some states have shown interest , but progress has been slow:
    • Kerala announced a space park in Thiruvananthapuram (2019) , but tenders are yet to be issued .
    • Andhra Pradesh , home to Satish Dhawan Space Centre (Sriharikota) , also wants to establish aerospace parks.
  • In 2022, Ananth Technologies launched India’s largest private spacecraft manufacturing facility in Bengaluru (15,000 sqm facility at Aerospace Park, Karnataka Industrial Areas Development Board).

Prelims Practice Questions

Q. Which of the following statements regarding India’s Space Parks initiative is correct?
  1. It is a part of the Production Linked Incentive (PLI) scheme.
  2. It aims to promote indigenous manufacturing of satellite components and launch vehicles.
  3. It was first proposed in 2022 and implemented in 2023.
  4. It is a joint initiative of ISRO and DRDO.

Mains Practice Questions:

  • Evaluate the role of the private sector in India’s space industry. How can government initiatives like Space Parks enhance the country’s global competitiveness?