Space, AI & Medtech to See Breakthroughs

Analysis of Expected Breakthroughs in Space Tech, AI, and Medtech in India in 2024

Source and Citation: Originally reported by V KAMAKOTI, ET Bureau, Jan 01, 2024

Layman’s Explanation

The article delves into the anticipated advancements in three key technological domains in India for the year 2024 – space tech, artificial intelligence (AI), and medical technology (medtech).

Space, AI & Medtech to See Breakthroughs

Space Tech

In the realm of space tech, the private sector’s active involvement is fostering innovation in satellites and rockets, crucial for the development of future communications infrastructure such as 6G. The article highlights the myriad social and economic applications of satellite imaging. The rapid production of rocket engines and launch facilities, primarily driven by startups, is considered vital.


In the AI sector, there is a focus on customizing large language models, like chatbots, for specific Indian domains such as healthcare, law, and engineering. Noteworthy is BharatGPT, an AI model tailored for doctors.


Medtech is expected to witness startups driving access to quality affordable healthcare through digital health solutions, telemedicine, AI diagnosis tools, and IoT-integrated devices. Local manufacturing of medical equipment is emphasized as a strategy to reduce imports.

The significant contributions of IITs and their startups across these domains are highlighted, with the combined impact of these technologies anticipated to fuel nonlinear GDP growth.

Impact on Retail Investors

For Indian retail equity investors, the accelerated innovation and adoption in space tech, AI, and medtech present lucrative opportunities across multiple listed companies and potential future IPOs.

Space Tech Growth

Benefiting entities include satellite communications providers like Nelco, telecom infrastructure operators investing in satellite broadband like Bharti Airtel, and rocket manufacturers such as L&T and Walchandnagar Industries. Potential startups for future IPOs encompass Pixxel, Agnikul, Skyroot Aerospace, Vesta Space, and Digantara.


IT majors like TCS, Infosys, and HCL Tech stand to gain through the deployment of intelligent automation and conversational AI solutions. Startup acquisitions, such as Staqu, are also envisaged.


Adoption of medtech improves diagnosis accuracy, benefiting hospital chains like Apollo Hospitals, Fortis Health, and Narayana Hrudayalaya. Pharma majors like Cipla, Sun Pharma, and Lupin, along with equipment manufacturers such as Metropolis Healthcare, Dr. Lal PathLabs, and Siemens Healthineers, aligned with ‘Make in India’ initiatives, are poised for upside.

Retail investors are advised to balance their portfolios by incorporating established players and emerging high-risk, high-reward new age tech investments.

Impact on Industries

The growth in space tech directly benefits satellite manufacturers, launch vehicle makers, ground equipment producers, and associated software/analytics firms. Satellite broadband and imaging stimulate industries such as agriculture, climate monitoring, disaster management, and urban planning.


Healthcare, legal, BFSI, and education sectors experience direct benefits from customized Indian language chatbot assistants. Predictive analytics, computer vision, and intelligent process automation enhance efficiency across data-rich industries.


The boost in medtech aids medical equipment production, telemedicine platforms, wearables, and digital treatment adherence tools. Hospitals and diagnostic chains witness efficiency gains, while insurers leverage patient data for customized policies. Pharma integrates connected devices and personalized medicine.

Overall, economic productivity, job creation, and global competitiveness improve across sectors, leveraging India’s talent pool through the deployment of cutting-edge future-ready technologies.

Strategic recommendations include incentives for startup nurturing, digital skilling programs, financing schemes, and global partnerships, essential for fostering growth.

Long-Term Benefits & Negatives

Expanding India’s space economy is projected to democratize satellite access, positively impacting communications, agriculture, and urban planning for inclusive long-term growth. Spillover effects from space tech R&D are expected to benefit strategically important defense, missiles, and nuclear energy segments.

Widespread AI assimilation is foreseen to improve efficiency, productivity, and accelerate growth across sectors. India could become a global hub for regional language tech due to language model expertise, but challenges around data privacy and job losses may emerge.

Boosting local medtech manufacturing and digital treatment is anticipated to improve healthcare access and outcomes in the long term. While telemedicine reaches remote areas, there is massive export potential. However, initial reskilling challenges need to be addressed.

An entrepreneur-led tech boom is expected to foster a culture of innovation and enrich India’s startup ecosystem, albeit with high failure risks. Regulatory uncertainties for emerging tech could hinder advancements.

Nurturing these sunrise areas is deemed vital for India’s sustainable long-term economic growth and global standing.

Short-Term Benefits & Negatives

In the short term, optimistic discussions surrounding space tech, AI, and medtech growth are anticipated to improve sentiment, funding access, and talent attraction for startups. This could lead to the formation of more ventures in these areas.

Large conglomerates and well-funded entrepreneurs may expedite significant investments in emerging tech, driven by India’s new space law, anticipating prolonged growth. Global strategic capital may also show interest in early-stage bets.

However, the short-term focus will primarily revolve around R&D, prototyping, and testing, with revenue traction taking time. Profitability may be a distant goal as new ventures prioritize growth and market share, sustaining high cash burn.

As incumbents adapt technology, some job losses may occur before reskilling and new opportunities cover employment gaps. The development of complex tech like rockets and satellites poses risks of failures and delays.

Regulatory uncertainties, especially regarding privacy laws and procurement policies between private and public space agencies, present early hurdles. Mass adoption among customers will also take time, with 5G reach being a crucial factor.

Overall, while short-term risks exist in technology development and commercialization, the foundations laid during this period will determine India’s long-term technological edge and global standing. Patience is deemed necessary for venture investing in these domains.

Potential Impact of “Space, AI & Medtech to See Breakthroughs” on Companies

Indian Companies:


  • Space Tech Startups:
    • Agnikul Cosmos, Skyroot Aerospace, Pixxel: The opening of the space sector for private participation creates significant opportunities for these startups to secure new contracts and investments, boosting their valuations and share prices.
  • Satellite Technology Companies:
    • Nelco, MapmyIndia, Avanti Space: Increased demand for satellites for 6G and societal applications could benefit these companies through contracts for manufacturing, launch, and data services.
  • AI Language Model Developers:
    • IIT Madras (IITM Research Park), Praxis Data Labs, Zeta AI: The development of BharatGPT and other domain-specific large language models could lead to lucrative partnerships with businesses in healthcare, law, and engineering, driving revenue growth.
  • Medical Technology Companies:
    • Tata Elxsi, Trivitron Healthcare, Neokraft Healthcare: As India focuses on becoming a medtech manufacturing hub, these companies stand to gain from increased demand for their manufacturing services and innovative medical devices.


  • Traditional Telecom Companies:
    • Bharti Airtel, Reliance Jio: The emergence of 6G with hybrid satellite communication could pose a potential threat to the dominance of existing terrestrial telecom providers.
  • Established Healthcare Providers:
    • Apollo Hospitals, Fortis Healthcare, Max Healthcare: While AI-powered tools could enhance medical services, some established healthcare providers might face challenges adapting to new technologies and potentially experience changes in patient flow due to increased telehealth options.

Global Companies:


  • Satellite Technology Leaders:
    • Iridium Communications, SpaceX, Lockheed Martin: Increased global demand for satellite technology and launch services could benefit these established players by expanding their market reach and order books.
  • AI Language Model Developers:
    • OpenAI, Google AI, Microsoft AI: The development of BharatGPT and other domain-specific models could inspire similar initiatives in other countries, potentially leading to collaboration opportunities and knowledge exchange with Indian researchers.
  • Medical Technology Providers:
    • Johnson & Johnson, Siemens Healthineers, Philips Healthcare: Increased focus on affordable healthcare solutions for developing countries could create opportunities for these companies to partner with Indian manufacturers and expand their reach to new markets.


  • Companies Reliant on Legacy Space Technologies:
    • Rocket Lab, Virgin Orbit: The rapid advancements in Indian space technology could disrupt existing market dynamics and pose a challenge to companies with older technologies.
  • Global Healthcare Giants:
    • Pfizer, Novartis, Roche: Increased focus on locally-developed medical technologies and affordable healthcare solutions in India could potentially reduce market share for global pharmaceutical companies in the long run.

Market Sentiment:

  • The news article is likely to have a positive impact on the Indian stock market, particularly for sectors like space technology, AI, and medtech. Increased government support, private participation, and potential breakthroughs could attract investor interest and drive valuations.
  • Global markets could see varied reactions. Established players in relevant sectors might experience a mix of opportunities and challenges. Emerging companies and countries focusing on similar technological advancements could benefit from collaboration and knowledge exchange with India.
  • Overall, the focus on these three sectors signifies a potential shift in the global technology landscape, offering new opportunities for innovation and growth.

Note: This analysis is based on the limited information provided in the news article. Further research and due diligence are necessary for a more accurate assessment of the potential impact on specific companies and sectors.

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