News

Asian Development Bank Open To Financing India’s Space Sector: VP Bhargav Dasgupta

SUMMARY

India has come out as the bank's fourth largest shareholder and its top borrower since 2010

This comes two months after the Indian government fulfilled a long-standing demand of spacetech startups by liberalising the FDI policy for the sector

In 2020, the Centre allowed the entry of private players into the space industry

Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

The Asian Development Bank is open to funding India’s space sector, besides focusing on climate financing to reduce associated risks, its vice president Bhargav Dasgupta said.

ADB has not provided any assistance in the Indian space sector, although it has done some projects in satellite in the Asia Pacific region.

Talking to news agency PTI, Dasgupta said, “We have not done much till now. We are always open to look at new areas…we understand it has been opened up and there is lot of interest on startup side…if we find alignment with our objectives in terms of Sustainable Development Goals (SDGs), we will look at it.”

ADB was founded in 1966 and is owned by 68 members. India is among its founding members. The bank is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.

India has come out as the bank’s fourth largest shareholder and its top borrower since 2010.

This comes two months after the Indian government fulfilled a long-standing demand of spacetech startups by liberalising the FDI policy for the sector, allowing up to 100% FDI via the automatic route for certain sub-segments in the space sector.

Last month, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) released the guidelines for the implementation of the Indian Space Policy 2023. The norms pertain to the rules regarding authorisation for space activities in the country. 

The guidelines detail various space-related activities that need authorisation from IN-SPACe. It also outlines various criteria and prerequisites mandatory to seek appropriate approvals from the space agency. 

In 2020, the Centre allowed the entry of private players into the space industry alongside establishing the IN-SPACe. 

According to a report by Inc42 titled ‘Indian Spacetech Startup Landscape and Market Opportunity, 2023’, more than 150 spacetech startups secured $285 Mn+ in funding between 2014 and 2023. 

Most of them are backed by a diverse array of active investors, including prominent names such as Pi Ventures, Speciale Invest, Peak XV (formerly Sequoia India and SEA), Mumbai Angels, Artha India Ventures and 9Unicorns, among others.

Other associated reasons for this growth include cost-effective innovation and global collaborations, fostering partnerships with over 65 countries and multilateral bodies. 

Moreover, recent policies like the Space Communication Policy, Space Remote Sensing Policy, and the Indian Space Policy, of 2023, further promote technological access and private sector integration, which further propels the sector’s growth.

 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

Recommended Stories for You