Opinion A larger role for private sector in new space policy is a step in right direction

The Indian Space Research Organisation (ISRO) is known across the world for its cheap rocket launches. Until a few years ago, private companies would find it difficult to get access to these capabilities. It was not until 2019 that ISRO opened up satellite launch facilities to the private sector. Even then, the agency had issues in launching small satellites into space through its newly developed Small Satellite Launch Vehicles (SSLV) programme.

The use of space assets is often treated as a “weak-link problem”. This means these assets are seen as rigidly finite, and engagement from the private sector could be seen as the “weak link” in the utilisation of space resources.

We find now among the spacefaring nations that space has inevitably become a strong-link problem. Meaning that space is increasingly seen as an area where cutting edge and leading technologies are of critical importance. The country’s space programme is only as good as its “strongest link”. In other words, creating conditions for the best research and innovation matters more than trying to control the use of space assets. Startups and companies have been able to inspire confidence in their innovative practices and efficient delivery with the entry of firms like Elon Musk’s SpaceX in the USA and Agnikul in India. This shift is necessary given growing geopolitical tensions and the space race. Nations are competing on fronts like satellite presence in the Low Earth Orbit (LEO), space tourism, satellite broadband, etc.

Since 2019, space reforms have allowed the private sector to participate in newer areas and engage with ISRO in capacities beyond subcontracting, which was previously its predominant role. The reforms were intended to make the use of space assets more demand driven and provide entry to private players — a move other spacefaring countries have already made. It prioritised some specific technology transfers to the private sector such as that of the Polar Satellite Launch Vehicle (PSLVs) and the Small Satellite Launch Vehicles (SSLVs) as well as the creation of agencies which provide legal frameworks for the participation of firms and startups.

Now, under the Indian Space Policy 2023, the government has additionally mapped out the position of the private sector as a budding player and that of government agencies — Indian National Space Promotion and Authorization Center (IN-SPACe), ISRO and the New Space India Limited (NSIL). From regulation to promotion and governance, the policy has taken cognisance of the need to define the scope, functions and outlook of these agencies. Broadly, IN-SPACe has been entrusted as the regulatory and promotional body to oversee private players’ activities in space. NSIL has been entrusted to commercialise publicly-funded assets. ISRO is expected to focus on advancing space R&D and contribute to areas of space exploration which are of national interest. The policy also talks about a framework for continuing sustainable and safe space operations in line with international standards. The growth of the private sector has often been associated with a proliferation of space junk, making space activities costlier.

The quotient of gatekeeping of space as a market has been tempered with the new policy. Space assets cannot only be accessed by the private sector for research and operation now, but firms are encouraged to take up the manufacturing of mature systems currently made by ISRO.

The new policy states: “ISRO shall transition out from the existing practice of being present in the manufacturing of operational space systems. Hereafter, mature systems shall be transferred to industries for commercial exploitation. ISRO shall focus on R&D in advanced technology, providing newer systems and realization of space objects for meeting national prerogatives.”

Since 2020, there has been a drastic increase in the number of startups engaged in space products and services. There has been an increase in the number of space startups operating in India from 42 in 2019 to 71 currently active, according to a defence and space startups database from The Centre for Technology Innovation and Economic Research (CTIER). Another estimate based on the Economic Survey 2022 says that 47 new startups were incorporated in the space sector in 2021 up from just 11 in 2019. According to this estimate, there are currently 100 startups, cryogenic engines, rockets built for small satellite launches, satellite communications to the environmentally sustainable propulsion fuels.

However, it remains to be seen how the transition would affect production of space goods and services given the private sector’s current state of manufacturing. According to a survey of 281 Indian space equipment manufacturers and service providers by Dassault conducted in 2020, around 75 per cent of the firms were involved in tier-2 and tier-3 products which were classified in the low-medium value add category.

The government is bullish on startups and is interested in accessing novel ideas from them through multiple models of public procurement. Among these, the most evident are the challenges announced by ministries that space startups can participate in such as the Innovations for Defence Excellence (iDEX) programme or the Atal New India Challenges [ANIC] – ARISE programme along with other deeptech startup challenges. The easing of space as a market for the private sector is likely to encourage startups to develop solutions in several areas of critical technologies within spacetech.

The opening up of ISRO’s assets through its launchpads and control stations as well as the remote sensing data is likely to catapult the position of startups in the future. By playing a strong advisory and consulting role to the private sector, ISRO can bank on its legacy of successful space missions and help firms learn from its failures.

The writer is research associate at the Centre for Technology Innovation and Economic Research