Investing in the Indian space boom: A guide for global Investors

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Yash Vora

3/13/20242 min read

The Indian space sector is now experiencing growth by offering new opportunities to investors to invest in being part of the next big revolution in technology. ISRO is leading the charge and also the government is pushing the privatization by buzzing the potential of the Indian space sector. New Space India Limited initiatives are crucial for drawing investment and establishing partnerships, marking a significant shift towards privatization and commercialization in the Indian space sector.

The new era is dominated by the startup and private sector. We are starting the satellite production, launch service, and space-based application through this. Companies like Skyroot Aerospace and Pixxel are at the forefront, spearheading innovations in rocket technology and earth observation satellites, respectively. Through this, investor gets direct entry to invest in the Indian space sector, through private funding or public listing.

Why Invest Now?

The space sector in India is now at its peak, and the government is also encouraging privatization and global collaboration. In India, cost-effective engineering is growing startups and unique market advantages. India is a compelling proposition for global investment due to India's strategic position in the global space race and its technological capabilities.

Way to invest for global investor

Equity Investment: There are companies like Bharat Electronics, HAL, MTAR Technology, and many more that are actively supplying in the space sector therefore the investment can be done through equity.

Private Equity and Venture Capital: investment will provide direct exposure to the innovation of space technology. Direct investment at the early stage is the risk of giving the potential high returns and that shows the viable option.

Space-focused fund and ETF: Indian Space ETFs are not that common as compared to the global ETFs. But with the help of growing startups, it can provide new and diversified investment options for the public.

Collaborations and partnerships: investment for institutional investors can collaborate with the ongoing project of ISRO or NSIL and this is the way to partner with large projects.

Navigating the Risks

Investors need to consider that investing in the space sector comes with a set of risks and challenges. The reason is the long period of investment and projects with regular change in the technology and many a time they also can face failure. Also, the geopolitical landscape and change in government policy can impact investment security and its return.


Thank you.

Regards,

Mahek Sanghvi,

Kautilya, IBS Mumbai.

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