Reforming space industry

The new space policy will offer much-needed clarity and augment private participation

Hyderabad: By ending the monopoly of government agencies and allowing access to the private sector, India has taken a big leap in tapping the country’s potential in the global space market. Private companies will now be able to build rockets, satellites and launch vehicles, data collection and dissemination. As per the Space Policy 2023, the details of which have been made public recently, the private sector will gain access to end-to-end space activities. A key takeaway is that the Indian Space Research Organisation (ISRO) can now focus exclusively on research and development of advanced space technologies while a clear framework will be made available for the private sector to use ISRO facilities for a small charge and also encourage them to invest in creating new infrastructure for the booming sector. India has already established a reputation as a dependable player in the commercial satellite market. It has been focusing its efforts on increasing its share in the global commercial space market. Despite being the world’s major space-faring nation, it has only 2% of the commercial market at present. The government plans to increase this share to 10% by 2030 through commercial launches by ISRO and launches offered by private companies like Skyroot and Agnikul, which are in the process of developing their own launch vehicles. The global space industry is worth over $500 billion, with the United States and China spending the most. The new space policy will pave the way for much-needed clarity in space reforms and augment private industry participation to drive the space economy opportunity for the country.

The Indian space industry’s major advantage is its cost-effectiveness. ISRO has demonstrated its capabilities to be a dominant global player in the commercial satellite launch sector. The successful launch of its heaviest rocket LVM3 in March last, carrying 36 internet satellites of UK-based OneWeb group company, stood testimony to this. The development also represented a major step towards bridging the digital divide. Valued at $7 billion in 2019, the Indian space industry aspires to grow to $50 billion by 2024. To achieve this target, India needs to utilise its cost-effectiveness in the space sector. According to the Economic Survey of India, there have been over 100 active space companies since 2012. Many of them are currently vying for approval from the newly formed InSpace, or the Indian National Space Promotion and Authorisation Centre, an institution that serves as a liaison between ISRO and private sector enterprises. Allowing private companies to perform space missions has benefited nations such as the US, Russia and some European countries. The new space policy is an important step towards integrating both commercial and national security requirements in a balanced manner. It will provide a strategic roadmap to promote innovation, technological advancements, and international cooperation, and to ensure national security in the space domain.

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