Seven Indian space start-ups selected for Indo-US defense program: Report
What's the story
Seven Indian start-ups have been selected for a first-of-its-kind India-US space and defence collaboration program, reported Reuters, citing people familiar with the sources.
The initiative marks a major step in the strategic partnership between the two countries.
The selected companies include space imaging firm KaleidEO, and rocket manufacturers EtherealX and Aadyah Space.
Strategic partnership
Collaboration with US defense innovation unit
The selected Indian companies will work with the US Defense Innovation Unit, the Department of Defense, and other government agencies.
They will work in the areas of satellite observation and emerging space and defense technologies.
This partnership gives these firms access to the world's largest defense and space market, giving them a competitive edge in their respective sectors.
Industry collaboration
Indian firms to work with US defense industry leaders
Along with market access, the chosen Indian companies will also get mentorship and paid clientele from US defense industry leaders.
These include big names like Northrop Grumman, RTX (formerly Raytheon), and Lockheed Martin.
This opportunity could give a leg-up to their competitiveness in the US business sectors, worth about $1.5 billion annually, as per the Reuters report.
Innovation bridge
India-US Defense Acceleration Ecosystem: A bridge of innovation
Launched in 2023, the India-US Defense Acceleration Ecosystem aims to create an innovation bridge between the two countries.
The initiative is part of India's plan to grow its private defense and space industries while decreasing reliance on Russia.
Indian investor IndusBridge Ventures and US-based FedTech, which set up a launchpad in September 2024 under this government initiative, chose the seven Indian companies.
Revenue prospects
Potential revenue boost for Indian private players
Access to the US defense and space market could prove to be a game-changer for Indian private firms. It could generate annual revenues between $500 million and $1 billion, it is estimated.
The main aim of this initiative is to allow India-based companies to work with the US Department of Defense and private industry leaders, and gain a foothold in the US commercial space launch market.