Business

Reaching for the stars as India’s space technology advances

SS Mantha, a space industry consultant based in Mumbai, talks about India’s evolving space technology sector.

Rebecca Bundhun

February 18, 2017

SS Mantha, a space industry consultant based in Mumbai, talks about India’s evolving space technology sector.

Could you talk about how India’s space industry is developing?

The Indian space industry is vibrant, self-reliant and poised to be at the forefront of space technology today. From building its first satellite, Aryabhata way back in 1975, launched with the help of the then Soviet Union, Isro has come a long way to where it launched 104 satellites in one go and on a single rocket on Wednesday. The department of space and Isro of the government of India has been extremely proactive and has ambitious plans for the development of Indian space technology.

Which countries are India’s biggest competitors when it comes to the sector and what advantages does India have over them?

South Korea, Japan, United Kingdom, France, China, Russia, Israel, Iran, and the US are all competitors. However, cost, credible programmes, technology transfer in certain areas are advantages that India provides which probably would be hard to match for many of the other countries.

With Isro’s Chandrayaan-1 lunar mission, launched in 2008 and the Mars orbiter mission, which successfully entered Mars orbit two years back, India is firmly in the midst of the space technology-enabled countries. The Indian effort certainly cuts costs in addition to being a commercial proposition on cost-to-performance basis.

What are the major challenges when it comes to India growing its space industry?

Emerging technologies as a means of competitive differentiation, credible suppliers, ageing workforce, manufacturing challenges, commercial versus defence requirements, safety, security, cost escalations and perceived vulnerabilities are all major challenges.

Are there enough private players in the industry in India?

Largely, the Indian space programme is state-driven. However Isro procures about 70 per cent to 80 per cent of components and services from private sector contractors. Some major players are Larsen & Toubro, Godrej and a host of SMEs.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

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Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

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Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

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