The Indian government is currently drafting a new law to regulate the burgeoning space sector, as announced by Union Minister Jitendra Singh. This initiative follows significant reforms in the space industry over the past four years, which have included increased private sector participation and liberalized foreign direct investment (FDI) policies.

Regulatory Framework: The new legislation aims to establish a comprehensive regulatory framework for space activities in India. This is crucial as the sector has witnessed rapid growth, with an increase in private players and start-ups entering the market.

FDI Policy Changes: Recent amendments to the FDI policy allow for automatic approval for investments up to 49% in launch vehicles and 74% in satellite manufacturing, enhancing India's attractiveness to global investors.

Growth of the Space Economy: Singh noted that the Indian space economy is projected to expand significantly, potentially reaching $44 billion by 2033, driven largely by private sector contributions. The current size of the Indian space economy is estimated at around $8.4 billion, accounting for approximately 2-3% of the global market.

Support for Start-Ups: The government has implemented various initiatives to support non-government entities (NGEs) and start-ups in the space sector, including funding schemes and mentorship programs through organizations like IN-SPACe (Indian National Space Promotion and Authorization Centre).

Future Aspirations: Singh also mentioned ambitious plans for India's space exploration, including setting up its own space station by 2035 and landing on the moon by 2040.

This legislative effort is part of a broader strategy to ensure that India can effectively manage its growing role in global space activities while fostering innovation and investment within its domestic industry.