Despite developing competitive technologies, Indian space companies are reportedly facing challenges in growth due to irregular supplies of essential components required for productization.
The primary components facing procurement challenges include space-grade electronics, semiconductors, solar panels, solar cells, valves, fittings, and vents.
Local experts have pointed to the weak industrial ecosystem within India for producing key components as the main cause of the issue, emphasizing the need for cooperation between the government and private sector to address it.
Yashas Karanam, co-founder of Bellatrix Aerospace, which develops space propulsion systems, said in an interview with local media, "We use essential chemicals imported from Germany," noting a significant gap between the domestic chemical industry and overseas counterparts.
He claimed that this issue is occurring across various material fields.
Karanam also pointed to India's tariff policies as another cause of the problem.
He explained, "The Indian government imposes the same high tariffs on space-grade solar panels as on regular solar panels," adding that "while this policy reduces imports of Chinese products and encourages local production, the heavy tariffs on space-grade solar panels place a significant cost burden on space startups."
Kshitij Khandelwal, founder and CTO of Pixxel, a Bengaluru-based Earth observation data company, stated that "import costs account for 40% of the cost of solar panels," highlighting that tariffs raise the cost of satellites, potentially lowering their international competitiveness.
He noted, "It takes nearly a year to import space-grade solar panels into India," identifying slow customs clearance as an additional issue. He added that such delays in customs impact the assembly, testing, and launch schedules of satellites.
He argued that addressing these complex issues requires a comprehensive review of India's industrial ecosystem and tariff policies, and that a separate management policy should be developed for space components that rely heavily on overseas imports.
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Indian Space Firms Hindered by Key Component Shortages and High Tariffs
Despite developing competitive technologies, Indian space companies are reportedly facing challenges in growth due to irregular supplies of essential component
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