Introduction

India’s space prowess has come a long way since ISRO launched the country’s first rocket in 1963. But in these 60 years – and especially in the last decade – space has become a critical domain given its potential not just for peaceful purposes such as superior communication in remote areas, better weather forecasting and disaster warnings/management but also for strategic (military) reasons. The rivalry between the USA and China clearly extends to space, with both countries building weapons that can be deployed in space and used to target virtually every corner of the earth.

In this context, India can ill-afford to not develop its space-related scientific and technological capabilities. We have emerged as a globally competitive provider of launch services. But this is not enough, given that India’s market share is still relatively small. Our space programs are still largely powered by government initiatives. This is not enough; advancing our spacetech capabilities and competing commercially with other global rivals needs a larger domestic ecosystem that can tap into the intellectual and financial capital available to the private sector. This process began a couple of years ago and has already seen many Indian startups design and build satellites and other space vehicles.

The Indian Space Policy, 2023

The announcement of the Indian Space Policy, 2023 by the Government of India earlier in April is important for three reasons, namely: –

• It provides a sharper focus on the role of ISRO and more clearly demarcates the roles of New Space India Limited (NSIL) and Indian National Space Promotion and Authorization Center (IN-SPACe).
• It creates a clearer path for private sector participation.
• It takes a holistic view of the sector, including within its ambit not just the building and launch of satellites, rockets and other space vehicles but also satellite communications, deep-space exploration, remote sensing, data gathering and dissemination and space transportation.

The new policy is expected to boost this process by channelling efforts in different segments of the value chain. ISRO is being asked to develop new technologies and systems, in other words, drive critical R&D, while NSIL will handle the operational aspects of ISRO’s missions, as well as other strategic activities. IN-SPACe will function as the interface between ISRO and non-governmental entities (including the private sector, which was permitted to enter the space sector in 2020). This will improve the creation and adherence to more evolved operating procedures. 

The private sector will be allowed to use ISRO’s facilities for launches, which is critical because startups and smaller companies will often not have the resources needed to tap other launch facilities. The new policy also seeks to encourage private investment in the creation of new infrastructure as well – something that will be needed as more Indian ventures seek engineering, manufacturing and launch infrastructure. Private companies that ISRO sub-contracted work to can, under the new policy, also work with other customers (including foreign companies).

By one estimate, there are already more than 400 private sector entities associated with different facets of the space sector. ISRO itself has supported over 150 startups. College students from across India too have designed and built satellites, some of which have already been launched successfully.  Given rapid advances in various fronts – materials, fuel, communications, miniaturization, AI, etc., and the emergence of so many new application areas, the space industry is now virtually a “sunrise” industry. The new policy is intended to give a boost across the R&D-design-build-launch-harness value chain that will deliver even more thrust to power India’s aspirations as a leader in the space economy.

The fine print matters!

India currently accounts for less than 2% of the US $500 Billion space economy. It is possible to increase this to 10% in the next 3 years. But there’s many a slip between the proverbial cup and the lip. As with every other policy, how the rules are framed, the specific details covered, and the actual wording will collectively determine how well this policy achieves its objective of propelling India’s ability to garner a much larger share of this monopolistic market and become “atmanirbhar” in a sphere that is becoming increasingly critical by the day.

The rules will need to be drafted carefully to ensure that the legitimate interests of innovators are safeguarded (through appropriate mechanisms for protecting Intellectual Property Rights) without compromising national security or other interests (e.g., by allowing critical IPR or sensitive data to be commercially exploited). Shareholding structures and investment routing will need to be carefully monitored to ensure that interests inimical to India do not gain control over key technologies or assets. Individual contracts too will need to be carefully drawn up so that the interests of Indian entrepreneurs/ventures and other entities are protected.