Beyond Software: Karnataka plans space policy to tap ISRO ecosystem

After the success of Chandrayaan-3, the economy of the space sector has been growing dramatically, and the Karnataka government is out to tap it. The state, which boasts a decades-long IT success story, now plans to adopt a Space Policy to boost economic growth. The focus will be on strengthening the space and financial technology sectors, focusing on investment attraction, job creation, innovation and research.

The Karnataka Department Of Electronics Information Technology Biotechnology (ITBT) hopes to tap a new avenue of revenue generation through the space industry, drafting an outer space policy for this purpose.

The Indian Space Research Organisation (ISRO) is headquartered in Bengaluru, where 70 per cent of the nation's space research is done. However, most of the components required for the satellites launched by ISRO are manufactured in Tamil Nadu, Andhra Pradesh, and Maharashtra. The Karnataka government intends to encourage all the products required by ISRO to be manufactured in the state itself, ITBT sources told The Federal.

More importantly, once the satellites are launched, it is important to use the information coming from them (downlink) for various industries in the model of wind-power-generation companies. The ecosystem needs to be designed in such a way that it can be used in other industries as well. That is why it has been decided to formulate a separate policy around this. Some startups in the space sector have also been roped in to formulate the policy, sources said.

“We aim to make Bengaluru the capital of the space economy,” said an official of the ITBT department. “Discussions are now underway to formulate a policy. An important meeting will be held soon. After that, the policy-making process will start and the new policy is expected to be announced around the next Budget,” the official added.

Telangana at it, too 

Currently, no state has a separate space policy, but the Telangana government is reportedly planning one as well. The former BRS government of K Chandrashekhar Rao had prepared a draft, which is likely to get a clear shape under the new Congress government led by Revanth Reddy. The Karnataka government plans to declare the policy as soon as possible to gain an edge.

The space economy in the country now stands at $8.4 billion. It is estimated to reach $44 billion by 2033. The state government aims to attract 40 per cent of that to the state by turning it into a space tech destination. Since ISRO and other space-related research institutions are located in Bengaluru, achieving a major share of the space economy to the state will be easy, an official added.

If most of the investment coming into the country is invited to the state, it will automatically create jobs. Accordingly, there is a discussion about giving more exemptions to enterprises coming to the state. The concessions given in various sectors, such as audiovisual, biotechnology, etc., will be extended to space industries as well. Along with that, a strategy for market facilitation will be formulated, he added.

Currently, the major share of revenue of the state comes from the software industry. Hence, the state government is planning a ‘Beyond Software’ policy to find new areas for revenue generation. The Space Policy is part of that effort, the sources said.

ITBT Minister Priyank Kharge said discussions have been held to implement new policies to prioritise research and innovation to exploit the opportunities in the space economy. There will be a meeting with various companies soon, and the aim is to make Bengaluru the capital of the space economy, he said.