India aims for stars with release of policy document seeking greater private activity in its space economy

On a day that was marked by a rare hybrid solar eclipse and the unsuccessful launch of billionaire Elon Musk-promoted SpaceX’s largest rocket-- the world's largest-- India released a document to lay down the roadmap for various stakeholders in the entire value chain of its sunrise space economy. 

While seeking to boost the role to be played by non-governmental entities (NGEs) or the private sector, the policy document seeks to “augment space capabilities; enable, encourage and develop a flourishing commercial presence in space; use space as a driver of technology development and derived benefits in allied areas; pursue international relations, and create an ecosystem for effective implementation of space applications among all stakeholders.”

These details were due ever since the Cabinet Committee on Security cleared the much-awaited Indian Space Policy, 2023, on April 6. 

The document also paves way for large consumers of space technology or services such as communication, remote-sensing, data services, launch services, etc., to directly procure from any source, whether private or public. 

Welcoming the release of the document, secretary general of the apex industry body, the Indian Space Association (ISpA), Lt. Gen (Retd), Anil Kumar Bhatt said, “The policy will help to create opportunities for the private sector to engage in all aspects of the space industry, from setting up and operating space objects and ground-based assets, to offering related services like communication, remote sensing, and navigation, thereby enabling them to provide end-to-end solutions in the space sector.” 

The NGEs have been allowed to undertake end-to-end activities in the space sector through the deployment and operation of space objects, ground-based assets, and related services, such as communication, remote sensing and navigation. 

However, this concession is subject to guidelines prescribed by the nodal agency for promoting and regulating private players in the sector, Indian National Space Promotion and Authorisation Centre (IN-SPACe). IN-SPACe will be issuing periodic guidelines and procedures to facilitate the ease of doing business. 

Importantly, the national space agency, the Indian Space Research Organisation (ISRO) will increasingly focus on the research and development of new space technologies and applications, and on expanding the human understanding of outer space. This will mark an evolution in the 53-year-old organisation’s role, which will see its role expanding from that of a manufacturer of operational space systems to their transfer to industries for commercial exploitation. 

Meanwhile, NewSpace India Ltd (NSIL) – ISRO’s commercial arm – will be responsible for commercialising space technologies and platforms created through taxpayer money, manufacturing, leasing, or procuring space components, technologies, platforms and other assets from the private or public sectors, and servicing the space-based needs of users by maximising returns on invested capital. 

As an administrator of the country’s space programme, the Department of Space (DoS) will oversee the clear distribution of responsibilities outlined in the policy and ensure different stakeholders are empowered to discharge their respective functions while avoiding any overlaps. 

The policy is applicable to any space activity undertaken on or from Indian territory or within the country’s jurisdiction including the area to the limit of its exclusive economic zone. Furthermore, the government can provide exemptions to its provisions on a case-to-case basis. 

“We are pleased to see that DoS, ISRO, NSIL and IN-SPACe would not only be supporting innovation and working closely with private Indian Space entities but would also step in to address risks when necessary,” remarked the head of strategy and special projects at the Hyderabad-based Dhruva Space, Kranthi Chand.

“By underpinning the Indian Space Policy, 2023, with such a set of principles, we hope this will drive consistency across private Indian space entities while also providing them with the flexibility needed,” he added.

Experts have told Business Today the watershed policy could potentially result in India increasing its market share in the global space economy by up to five times. A 2022 joint study by consulting firm EY and ISpA has estimated the sector to be worth $13 billion by 2025.

Also read: India’s space policy roadmap to result in 5x rise in country’s global market share: Industry

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