India competes with China in $447 billion space economy

India competes with China in $447 billion space economy

NewDelhi - India is positioning itself to compete with China in the growing $447 billion space economy, as Russia's geopolitical isolation due to its invasion of Ukraine and China's tensions with the US have created opportunities for new players.

Last month, India's state-owned NewSpace India Ltd. launched three dozen communications satellites for OneWeb Ltd. from an island off the nation's eastern coast, signaling its ambitions in the sector. The move not only helped salvage the UK satellite company's bid to create a global broadband internet network, but also demonstrated India's capabilities in satellite launches.

The demand for high-speed internet delivered from space has made launching satellites into orbit a lucrative business. According to Ernst & Young estimates, the space economy is projected to grow to $600 billion by 2025 from $447 billion in 2020. Along with Elon Musk's SpaceX, Russia and China have been the main providers of satellite launches, given their long-running state space programs. However, with the war in Ukraine and Beijing's tensions with the US, they are now off limits to many potential customers.

In contrast, India has moved closer to the US and other regional powers such as Australia and Japan. The country's launches also cost less than its rivals, making it an attractive option for many satellite operators. Furthermore, Indian Prime Minister Narendra Modi's "Make in India" campaign aims to position India as a top destination for technological innovation, with the development of the space sector being a key plank of this campaign. His administration has tried to make India's space agency more business-friendly by encouraging the growth of startups.

Chinese rockets are not a good option for many satellite operators, partly due to growing concerns about Beijing accessing Western technology. India, on the other hand, has a much better political standing and has been able to establish partnerships with other major countries. D. Radhakrishnan, the chairman and managing director of NewSpace, predicts a shortage of heavy-lift launchers that will be required due to the huge demand in the industry.

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