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Space startups struggle with limited ecosystem, face high component costs
Industry News- Nov 05,24
High tariffs on space-tech solar panels, implemented to curb Chinese imports, further strain startups.
India’s burgeoning space tech sector, with around 200 dedicated startups, is facing challenges in sourcing critical components domestically, leading to high costs and delays. Although many technologies have been indigenised, startups report paying premiums on essential items like electronics, semiconductor chips, solar panels, valves, and fittings, which are often sourced internationally due to a limited local manufacturing ecosystem.
Yashas Karanam, Co-founder, Bellatrix Aerospace, noted that India’s manufacturing sector lacks the maturity to fully industrialise space technologies, with key chemicals still being imported from Germany. This, he explained, exposes significant gaps in the domestic chemical and materials sciences industries. Karanam emphasised the need for government support to bridge these gaps, as Bellatrix, which partners with ISRO, remains reliant on imports for advanced propulsion systems.
High tariffs on space-tech solar panels, implemented to curb Chinese imports, further strain startups, says Karanam. He pointed out that these tariffs, while intended to boost local production, lead to substantial customs expenses. Kshitij Khandelwal, Founder, Pixxel highlighted that 40% import duties on solar panels make satellite production costly and cause delays, as sourcing space-grade panels can take up to a year. Khandelwal advocates for either a reduced tariff structure for space-grade imports or a strengthened domestic manufacturing framework.
Investments in university infrastructure to support labs with advanced tools like photolithography could help develop local expertise, Khandelwal added. Karanam noted that, while India has solar panel manufacturing capabilities, the lack of local semiconductor plants for solar cell production poses a significant barrier, urging government investment to address this gap.
According to Aloke Kumar, Associate Professor, Indian Institute of Science, India’s space tech sector is still nascent and would benefit from a stronger triad between space agencies, industry, and academia to create a sustainable ecosystem. Kumar projects that India’s spacetech industry may take up to two decades to mature fully and reach global competitiveness.
(ET)
Space
startups
Yashas Karanam
Aloke Kumar
Kshitij Khandelwal
Indian Institute of Science
space tech sector
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