In a continued effort at evangelizing the challenges and concerns faced by the Space industry, SIA-India has presented a Pre-Budget Memorandum on Direct Taxes, indirect tax, and regulatory framework to the Hon. Finance Minister with a request to consider the same while framing proposals in the Finance Bill, 2023.

A copy of this pre-budget memorandum, which is prepared with multiple rounds of input from our members, can be accessed at https://bit.ly/sia-india, which captures some critical asks of the industry.

Industry Expectations & Key Recommendations:

• Introduction of Production Linked Incentive Scheme for the space sector
• Introduction of Tax Holiday regime and Goods and Services tax incentives
• Taxation Jurisdiction over Space Activities

In addition to the above recommendations, the space industry is also seeking increased deductions and tax concessions for research and development, level playing field exemptions for private players, additional depreciation, certainty on taxation, and employment generation to make the sector more attractive.

The SIA-India team looks forward to working with the government in 2023 to establish a strong position for the Indian space industry in the global economy. We wish you a successful new year filled with endless possibilities and growth. Cheers to all that you will achieve in the coming years!

Telecommunication Engineering Centre (TEC) under the Department of Telecommunications, Govt. of India is responsible for the development of standards and specifications for products, systems, services and testing methodologies in the field of telecommunications and related ICT sector. The Radio division of TEC specifically deals with the development of standards and specifications related to microwave systems, satellite communication systems, EMF exposure and its assessment, WiFi/WLAN/ISM band systems, VHF/UHF/HF radio systems, Electromagnetic compatibility, safety, environment testing etc.

Currently, the Radio division, TEC is in the process of formulation of a new standard on 'Interface Requirements for Non-Geostationary satellite orbit (NGSO) based communication networks'.

Team SIA-India had a meeting with Mr. RR Mittar, Sr DDG and Head TEC, and Mr Arun Agarwal, DDG-Satellite, TEC for extension of submission which has been accepted and now the last date of submission is 21 January. Members are requested to send in their comments by 15 January.

Anil Prakash, the Director General of SIA-India, is discussing the potential uses of the space sector in various fields such as urban development, transportation, and energy projects. He mentions that satellite mapping can be utilized to monitor and manage natural resources, forests, and farms. In the future, we can expect to see more widespread use of these techniques. Mr. Prakash also notes that space has become a key area of interest for defense, with the defense ministry issuing 75 challenges under the Innovation for Defense Excellence (iDEX) program for start-ups and SMEs to address. In addition, he mentions that the government is interested in using space-based technology for a variety of purposes, including solar power generation and disaster management. The Ministry of Home Affairs, Ministry of Agriculture, and Ministry of New and Renewable Energy are reportedly exploring potential applications in these areas.

Read more at: https://rb.gy/jabvw4

SIA-India is pleased to welcome Dr. Chaitanya Giri, Consultant, Space Policy & Diplomacy, Research and Information System for Developing Countries (RIS) as a member of the SIA-India Advisory Board. We look forward to working with him and to his valuable contribution.

As a signatory to the Outer Space Treaty of 1966 and the Liability Convention of 1971, and a member of the Inter-Agency Space Debris Coordination Committee (IADC), India should avoid generating space debris and institute a framework to mitigate the creation of, and manage, space debris, and meet the objectives of the IADC – i.e. exchanging information, space debris research, identifying mitigation options, etc.

While the Indian Space Research Organization (ISRO) has contributed to the IADC's Space Debris Mitigation Guidelines and has established a situational space awareness control centre and observatory, India has not instituted a regulatory framework for space debris created by Indian space operations – both commercial and non-commercial.

Although the Space Activities Bill, 2017 (Bill) required licensees for commercial space activities to take steps to prevent the contamination of outer space and, or, damage or pollution to the Earth's environment, and indemnify the Central Government against damage or loss caused by commercial space activities, the Bill has is yet to be introduced before Parliament. Given that, in 2021, ISRO had monitored 7,600 objects threatening to collide with Indian satellites, and had conducted 60 collision avoidance manoeuvres since 2015, it is imperative that India formulate regulations to prevent and manage space debris thereby promoting sustainable space activities.

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India has a well-developed space program, boosted by the realization of indigenous technology, facilities, systems, and rollout of services in a systematic manner. India's commercial space sector is still in the early stages of development, but there is significant potential for growth in the years to come.

"Make in India" and the "Atma Nirbhar Bharat" initiative policies are expected to spur small satellite manufacturing growth owing to increased demand for small satellites and have inspired the confidence in the health of commercial space economy in India. Keeping this in mind, the industry seeks support from the government in the form of Production linked Incentive scheme (PLI Scheme).

PLI scheme for the space sector is expected to be a big boost for Indian companies, both in terms of increasing their competitiveness in the global market and in terms of creating new jobs and economic opportunities. The scheme is also likely to have a positive impact on the Indian space sector as a whole, by encouraging more companies to enter the market and increasing the overall level of innovation and competitiveness.

In addition to PLI, the industry also seeks support in the form of financial tax enablers like introduction of deemed special economic zones, concessional rate of tax on research and development activity.

Separately, the government should ensure that the tax policies prescribed do not lead double taxation and nations with overlapping jurisdictions do not subject the same satellite based services or the same taxable event to tax twice. Further, the GST exemptions provide at par level playing field for both the private and the government companies and tax deduction at source rates are rationalised across the space sector ecosystem.

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The growing importance of space for both commercial and military purposes has also led to significant shifts in the geopolitical landscape, as countries seek to establish or strengthen their presence and influence in this domain. These developments have led to an increased focus on space capabilities and technologies, as nations look to enhance their military capabilities and protect their interests in space. This has resulted in a growing demand for space-based assets and technologies such as satellites, launch vehicles, and ground control systems, as well as an increased focus on space research and development.

With the traditional edge of existing space-faring nations being edged out by frequent and fast innovations, it is imperative to weave the cutting-edge of technology available in civil, commercial and military space domains in the application, operationalization and protection of military space capabilities.

DefSat 2023 by SIA-India aims to explore India's ambitions in the space domain, with a focus on innovation, thought leadership, and disruptive technologies. It brings together a diverse group of attendees, including government officials, military commanders, industry professionals, academics, and leaders in disruptive technologies from India and overseas.

The conference is intended to create a platform for organisations and countries with a keen interest to boost India's military space capability and plans. The event will focus on delivering space domain awareness and satellite communications to enhance military operations, and will also address issues related to securing funding for new space capabilities, expanding international partnerships, and developing a defense space strategy in line with the national space strategy.

Objective

• Creating 'One Stop Shop' for Defence Space Requirements
• Platform for G2B Engagements
• Knowledge pool for meeting future requirements of DefSat
• Exclusive Defence SpaceTech Sessions to showcase unique solutions

Key Features

Defsat 2023 provides networking opportunities for attendees from the defence, military, and government sectors, as well as industry professionals. It is a chance to engage with a wide range of stakeholders, including government agencies, such as the Ministry of Defence and the Indian Armed Forces; private sector companies that provide goods and services to the defense sector; ther stakeholders such as the think tanks and research organizations, universities and educational institutions, and civil society groups.

The conference features an impressive array of speakers from DRDO, MoD, ISRO, Department of Space, and think tanks, as well as academia and industry experts discussing a range of topics, including architecture modernization, Remote Sensing, COMSEC & TRANSEC, in-space AI, PNT, industry collaboration small satellites and Space traffic management & Space Defense. It will also include presentations from key international partners who will share their vision for future space operations in the coalition.