Content
- India’s space economy at $8.4 billion, nearly 400 start-ups active after sector opened to private players
- Government Notifies Coking Coal as Critical & Strategic Mineral under MMDR Act, 1957
India’s space economy at $8.4 billion, nearly 400 start-ups active after sector opened to private players
Overview
- India’s space economy is valued at USD 8.4 billion, with rapid post-2019 expansion driven by policy liberalisation, private participation, and institutional restructuring of the traditionally government-led space sector.
Relevance
- GS 3 (Science & Tech/Economy/Security):
Commercialisation of space technology, start-up ecosystem growth, exports, and strategic autonomy.
Why in news ?
- In January 2026, the government informed Parliament that India’s space economy reached USD 8.4 billion, with nearly 400 active start-ups, reflecting outcomes of post-2019 private-sector reforms.
Evolution of India’s space sector
Pre-2019 scenario
- Despite strong scientific capabilities within ISRO, the space sector remained largely government-driven, with minimal private participation due to regulatory uncertainty, limited access to infrastructure, and absence of a market-oriented ecosystem.
Post-2019 reforms
- Policy decisions after 2019 opened the space sector to private entities, enabling commercial participation across launches, satellites, downstream applications, and space-grade manufacturing.
Institutional framework
Role of IN-SPACe
- The Indian National Space Promotion and Authorisation Centre functions as a single-window regulator and facilitator, authorising private space activities and enabling access to ISRO facilities and technical expertise.
- As of now, around 1,050 private companies have registered capabilities on the IN-SPACe Digital Platform, indicating broad industrial interest across the space value chain.
Indian Space Policy, 2023
- The policy permits private entities to undertake end-to-end space activities, including launches, satellite manufacturing and operations, data acquisition, dissemination services, and ground-station infrastructure.
Start-up ecosystem and private participation
- The number of space start-ups has increased from single-digit figures to 399, operating in launch vehicles, satellite platforms, propulsion systems, electronics, and downstream space applications.
- Targeted support through IN-SPACe seed funding and pre-incubation programmes, with ₹2.36 crore disbursed so far, has lowered entry barriers for early-stage space entrepreneurs.
Economic size and growth projections
- India’s space economy, once marginal, is now valued at USD 8.4 billion and is projected to grow four to five times over the next eight to ten years.
- IN-SPACe’s Decadal Vision targets expansion to USD 44 billion by 2033, including USD 11 billion in exports, positioning space as a key contributor to economic growth.
Value-chain diversification
Upstream and manufacturing
- Private firms are increasingly involved in launch systems, satellite manufacturing, propulsion technologies, and space-grade electronics, reducing sole dependence on public sector execution.
- Technology transfer agreements, including for the Small Satellite Launch Vehicle, signal gradual commercialisation of ISRO-developed platforms.
Downstream and services
- Revenue generation is expected from Earth observation, satellite communication, navigation services, ground operations, and emerging in-orbit economy activities.
Global engagement and revenues
- Of the 434 foreign satellites launched by India, 399 were launched after 2014, highlighting India’s growing competitiveness in the global launch services market.
- These launches have generated revenues of approximately €323 million and USD 233 million, strengthening India’s commercial space credentials.
Governance and strategic vision
Decadal Vision strategy
- IN-SPACe’s roadmap is anchored on three pillars: revenue generation, ecosystem development, and catalysing space activities through industrial and international collaboration.
- Demand creation, export promotion, and international outreach are central to scaling private services and integrating Indian firms into global space supply chains.
Significance for India
- The expanding space economy supports high-technology manufacturing, skilled employment, innovation spillovers, and strategic autonomy in critical space capabilities.
- Space is transitioning from a scientific and strategic domain to a commercial growth engine, aligned with long-term development and global competitiveness goals.
Value Addition
1.ISRO (Indian Space Research Organisation)
Legal and constitutional status
- ISRO is not a statutory body; it is an executive organisation, created by a resolution of the Government of India, functioning under executive authority, not an Act of Parliament.
- It operates under the Department of Space (DoS), which was created in 1972 and is placed directly under the Prime Minister’s Office.
Administrative control and hierarchy
- The Department of Space exercises administrative, financial, and policy control over ISRO, ensuring strategic oversight of space activities with national security and development priorities.
- The Prime Minister is the ex-officio head of the Department of Space, highlighting the strategic and sovereign importance of space activities.
Functional positioning
- ISRO primarily functions as a technical and operational agency, responsible for mission design, satellite development, launch operations, and space applications.
- It does not have independent regulatory powers over private players, avoiding conflict-of-interest in the post-reform space governance architecture.
2.IN-SPACe (Indian National Space Promotion and Authorisation Centre)
Legal nature and creation
- IN-SPACe is also not a statutory regulator; it is an executive body established through a government decision to implement space sector reforms.
- It functions under the Department of Space, but is institutionally distinct from ISRO in mandate and decision-making.
Role in governance architecture
- IN-SPACe acts as an authorisation, promotion, and facilitation body, not a policy-making authority, ensuring separation between policy formulation and execution.
- It provides approvals to non-government entities for space activities, operating within the framework of the Indian Space Policy, 2023.
Government Notifies Coking Coal as Critical & Strategic Mineral under MMDR Act, 1957
Coking coal (metallurgical coal)
- High carbon content and low ash; when heated without air, it forms coke, a strong, porous material essential for blast-furnace steelmaking.
- Acts as both fuel and reducing agent in iron ore smelting; provides structural support to the burden inside blast furnaces.
- Limited domestic availability and quality constraints; India meets nearly 95% of steel sector demand through imports.
Relevance
- GS 1 (Geography):
Resource geography influencing steel industry location and infrastructure development. - GS 2 (Polity/Federalism):
MMDR Act application under Union List with cooperative federalism in revenue sharing. - GS 3 (Economy/Environment/Security):
Industrial input security, import substitution, and supply-chain resilience.
Why coking coal is in news ?
- The Union Government notified coking coal as a Critical and Strategic Mineral under the MMDR Act, 1957, through amendment of the First Schedule using powers under Section 11C.
- The notification is based on recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals and policy inputs from NITI Aayog, highlighting coking coal’s strategic importance.
- Classification as a critical mineral enables regulatory relaxations, including faster approvals, exemption from public consultation, and improved ease of doing business.
- The reform directly supports the National Steel Policy, given the steel sector’s overwhelming reliance on imported coking coal despite domestic geological availability.
Context
Strategic importance of coking coal
- Coking coal is an indispensable input for blast furnace–based steelmaking, contributing nearly 40–45% of steel production cost, making its availability vital for infrastructure-led growth.
- India has 37.37 billion tonnes of coking coal resources, mainly in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal, and Chhattisgarh.
Import dependence and vulnerability
- Despite domestic resources, imports increased from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25, reflecting quality constraints and slow mine development.
- Nearly 95% of coking coal requirement of the steel sector is met through imports, causing large foreign exchange outgo and exposure to global price volatility.
Legal and policy changes under MMDR Act
- The amendment redefines “Coal” in Part A as “Coal, including Coking Coal” and includes Coking Coal in Part D as a Critical and Strategic Mineral.
- Mining of critical minerals permits use of degraded forest land for compensatory afforestation and waives mandatory public consultation, improving project viability.
Governance and federal aspects
- As per Section 11D(3) of the MMDR Act, royalty, auction premium, and statutory payments from mining leases will continue accruing to State Governments.
- The reform balances centralised auctioning for strategic minerals with cooperative federalism, ensuring fiscal interests of mineral-rich states remain protected.
Expected outcomes
- The notification is expected to promote advanced exploration, beneficiation, and deep-seated mining, areas historically underdeveloped in India’s coal sector.
- It aims to strengthen supply-chain resilience, reduce geopolitical risks in steel inputs, generate employment, and enhance long-term industrial competitiveness.
- Strategically, the decision signals a shift from volume-centric coal policy to quality-based critical mineral governance, integrating mineral security with economic security.
Coal Formation and Types
| Parameter | Peat | Lignite (Brown Coal) | Bituminous (Soft Coal) | Anthracite (Hard Coal) |
| Coal Status | Not considered true coal | Low-grade coal | Medium-grade coal | Highest-grade coal |
| Stage in Coal Formation | Initial stage | Early coal stage | Advanced coal stage | Final coal stage |
| Carbon Content | Very low | Low | High | Very high |
| Moisture Content | Very high | High | Moderate | Very low |
| Heat (Calorific) Value | Very low | Low | High | Very high |
| Sulphur Content | Negligible | Low | Generally high | Very low |
| Formation Condition | Partial decomposition of plant matter | Increased heat and pressure | Further increase in heat and pressure | Maximum heat and pressure |
| Typical Occurrence | Swamps and bogs | Shallow burial zones | Deeply buried sedimentary basins | Highly metamorphosed coal beds |
| Uses | Not used as fuel | Limited power generation | Major industrial and power fuel | Premium fuel, metallurgy |
| Availability | Abundant locally | Limited in many regions | Widely available | Scarce in most regions |
Value addition
Data and Facts
- India targets 300 million tonnes of steel capacity by 2030, implying sharply rising coking coal demand unless domestic production improves.
- Global coking coal supply is highly concentrated, with Australia accounting for over 50% of India’s imports, increasing exposure to climate and geopolitical risks.
- Critical mineral classification elevates coking coal alongside lithium, cobalt, and rare earths, reflecting its transition from fuel to strategic industrial input.
Other coal (non-coking / thermal coal)
- Higher ash and volatile matter; does not form coke when heated, making it unsuitable for blast-furnace steelmaking.
- Primarily used for power generation, cement, fertilisers, and industrial heating processes.
- India has abundant reserves of non-coking coal, supporting energy security and reducing import dependence in electricity generation.
- Classified as a conventional mineral; does not enjoy regulatory relaxations applicable to critical and strategic minerals.
Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act)
- Principal legislation governing exploration, mining, and regulation of minerals in India, excluding petroleum, natural gas, atomic minerals, and minor minerals.
- Enacted under Entry 54, Union List, enabling Parliament to regulate mines and mineral development in the national interest.
- Empowers State Governments to grant mining leases, prospecting licences, and composite licences for most minerals.
- Allows Central Government to frame rules and issue directions to ensure scientific mining and conservation of mineral resources.
- First Schedule classifies minerals into different parts, including critical and strategic minerals for national importance.
- Section 11C empowers the Centre to notify minerals as Critical and Strategic, enabling faster approvals and special regulatory treatment.
- Section 11D(3) ensures royalty, auction premium, and statutory payments accrue to State Governments, even when Centre conducts auctions.
- Provides legal framework for auction-based allocation of mineral resources, promoting transparency and revenue maximisation.
- Recent amendments aim to improve ease of doing business, attract private investment, and strengthen mineral security.
