Karnataka Eyes $5B Space Investment Under New Tech Policy

• Karnataka's Space Tech Policy targets $5B investment over 5 years.
• Supports 500+ startups/MSMEs, 50K jobs, 50+ satellite launches.
• Incentives: 20-25% subsidies, rental/electricity relief, testing funds.

At​‍​‌‍​‍‌​‍​‌‍​‍‌ the Bengaluru Tech Summit, Karnataka launched its new Space Technology Policy, which, besides seeking to draw $5 billion in investments during the next five years, also aspires to place the state as the first space hub of India. The policy sets out to assist a network of 500+ space startups as well as MSMEs, to generate more than 50,000 skill-intensive jobs and to allow companies to build and launch a fleet of more than 50 satellites.

According to the state government, Karnataka wants to grab 50% of the Indian space market, which is estimated to be worth 22 billion dollars by 2033, and the state will be ready to accomplish this feat if it becomes the leading space hub in the country.

Priyank Kharge, the Minister for IT/BT and Rural Development & Panchayat Raj, said: "By means of this policy, Karnataka is eager to collect investments worth $5 billion, facilitate the growth of 500 plus startups and MSMEs in the space sector, generate a workforce consisting of more than 50,000 highly skilled jobs, and empower the local companies to design and launch a satellite mission involving more than 50 satellites in the coming years."

Also Read: CSIR-NAL Unveils New 'Production-Grade' Hansa-3 Aircraft Model

Essentially, a company that directs up to ₹100 crore worth of investments in the state will be entitled to various benefits that altogether amount to a 20% subsidy on plant costs, 25% on land, a 25% rent allowance for a period of five years, as well as complete exemption from electricity duty for a period of five years. In addition to the above-mentioned assistance, the government is also providing ₹1 crore for the testing phase and ₹75 lakh for technology transfer.

The five-year plan seeks to accelerate technological innovations in satellite manufacturing, launch services, ground systems, and space applications, using the local ecosystem of ISRO facilities, research institutions, and talent pool in Bengaluru. This can be seen as the first of several steps taken by India joining the wave of the expanding space economy, which is characterized by a hefty private sector involvement after the reforms of 2020. ​‍​‌‍​‍‌​‍​‌‍​‍‌