According to startups, though much of the technology is being indigenised, they continue to pay a premium compared with global competitors for sourcing electronics, semiconductor chips, solar panels, solar cells, valves, fittings and vents which are integral for the systems.
The manufacturing industry is struggling to achieve the maturity required to effectively absorb and industrialise space technology, Bellatrix Aerospace cofounder Yashas Karanam said.
“Core chemicals are still being imported from Germany, highlighting significant gaps in the domestic chemical industry. There is a lack of strong regional players manufacturing these components,” he added.
The same issues apply to material sciences, Karanam said, emphasising that startups in the sector need government support and funding to thrive.
Bellatrix is one of India’s earliest startups to have got a contract from the Indian Space Research Organisation, even before its founders had a college degree. The company has currently four offerings in propulsion systems.
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“Currently, the government imposes heavy tariffs on solar panels due to the blending of space-tech solar panels with commercial ones,” the Bellatrix cofounder said, While this strategy is to incentivise local production and reduce reliance on Chinese imports, it leads to substantial customs costs for startups, he said.Kshitij Khandelwal, founder and chief technology officer of Pixxel, said 40% import costs on solar panels make satellites more expensive, putting Indian companies at a disadvantage compared with international competitors. Also, sourcing space-grade solar panels can take almost a year, causing delays in satellite assembly, testing and launch schedules.
“To address this, we either need to develop a robust domestic manufacturing ecosystem or establish a separate paradigm and lower tariff codes for space-grade imports,” Khandelwal said.
He also highlighted that investments in infrastructure at the university level to support labs with advanced photolithography and other equipment could help build expertise in space-grade technologies.
Advocating for more investments in the manufacturing sector for spacetech, Karanam highlighted that even if India can make solar panels, solar cell tech is not straightforward.
“The production of solar cells and the entire substrate required to generate power poses a challenge, as India lacks the semiconductor plants necessary for this process. This is an area where the government should consider investing,” he said.
Associate professor Aloke Kumar of the Indian Institute of Science said the challenges in procuring electronic chips are well-known, but the country’s semiconductor plans could help address this issue.
“If India wants to become a global player in the space ecosystem, it needs an integrated space market where there is a triad — between space agencies, industry, and academia,” he said. India is still in the early stages of spacetech development and it will take at least another 20 years for the ecosystem to fully mature and develop into a robust industry, he said.