India is mirroring the trajectory of paving the way as many private players are leading the charge to commercialise India’s space sector and bolster its status as a space superpower.
Prime Minister Narendra Modi has emphasized the need for bold reforms to make India self-reliant in space technology. His vision includes leveraging the private sector’s potential to drive innovation and growth in the space sector. The Prime Minister’s call for a self-reliant India (Atmanirbhar Bharat) underscores the importance of creating a conducive environment for private companies to thrive and contribute to national development.
As India aims to expand its share of the global space market, the role of private enterprises becomes ever more critical. It is important to understand the historical context, current market landscape, key policies, the vital contributions of private companies to the Indian space sector and what are the future scenarios.
INDIA’S SPACE ACHIEVEMENTS UNDER ISRO’S LEADERSHIP
The Indian Space Research Organisation (ISRO) has been at the forefront of India’s space achievements since its inception in 1969. From launching Aryabhata, India’s first satellite, in 1975 to executing the successful Mars Orbiter Mission (Mangalyaan) in 2013, ISRO has consistently showcased remarkable capability and innovation. Significant milestones include the Chandrayaan-1 mission in 2008, which discovered water on the lunar surface, and Chandrayaan-3, which successfully landed on the Moon on 23 August 2023.
ISRO operates the GAGAN and IRNSS (NavIC) satellite navigation systems. It has launched three missions to the Moon and one to Mars. Chandrayaan-1 was launched in 2008. In 2013, the Mars Orbiter Mission made India the first country to succeed in reaching the Martian orbit on its first attempt. Following this, the cryogenic upper stage for the GSLV rocket became operational, making India the sixth country to have full launch capabilities. In 2014, ISRO introduced the heavier-lift launcher LVM3 for carrying heavier satellites and future human space missions.
On 23 August 2023, India achieved its first soft landing on an extraterrestrial body and became the first nation to successfully land a spacecraft near the lunar south pole with Chandrayaan-3. Following this, India successfully launched its first sun probe, Aditya-L1, aboard a PSLV on 2 September 2023.
India celebrated the success of Chandrayaan-3, a mission that built on the accomplishments of Chandrayaan-2. Focused on investigating the Moon’s south-polar region, Chandrayaan-3 aimed to deepen our understanding of the lunar surface using advanced instruments, particularly focusing on the area’s geological characteristics.
Another milestone in India’s space journey is the Aditya L1 mission, focused on heliophysics. Named after the Sun, Aditya L1 aims to study the Sun’s corona, the outermost layer, to provide valuable insights into solar activities and their impact on space weather.
India’s Xposat mission, short for ‘X-ray Polarimeter Satellite,’ highlights the nation’s expertise in X-ray astronomy.
In April 2022, India and the US signed a MoU on the Space Situational Awareness Data Sharing Pact, enabling collaboration between India’s Department of Space and the US Combined Space Operation Center (CSpOC) to protect space-based assets.
ISRO’s track record includes 124 spacecraft missions, 432 foreign satellites launched, 96 launch missions, and 8 re-entry missions. By showcasing such innovation and capability, ISRO has positioned India among the top five spacefaring nations alongside the USA, Russia, Japan, and China.
POLICY REFORMS
The diffusion of space technology and the boost to the space economy within the country required a shift from the existing framework. To address this, the government made a watershed decision in 2020, aimed at encouraging the participation of private companies in space activities.
This strategic shift proposed a change in allowing private entities to engage in end-to-end services from constructing and launching satellites to retrieving and utilizing data. This move was intended to foster innovation, reduce costs, and enhance the competitiveness of the Indian space sector and also enable ISRO to focus on critical exploration missions, including the anticipated human spaceflight programme. This decision is aimed to position India as a formidable competitor in the global space commercial market and solidify its role as a dependable and skilled partner for international space collaborations. Further, India’s proactive engagement in space diplomacy, facilitated through foreign satellite launches, bilateral agreements, regional cooperation, and collaborative initiatives with developing nations, will reinforce its standing on the global stage.
The major boost in reforms came with the establishment of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) in 2020. This organization was created to promote, authorize, and oversee space activities by non-governmental entities, instilling much greater confidence in the private sector.
Image Courtesy: Dhruva Space
The unveiling of the Space Policy in April 2023 marks a historic moment, signifying India’s ambitious goal to achieve a double-digit market share of 10-15% in the global space sector by 2030. Major reforms in India’s space sector from 2018 to 2024 have been pivotal in shaping the nation’s technological landscape. The National Digital Communication Policy of 2018 laid the groundwork for widespread connectivity, crucial for digital innovation.
Liberalized FDI Policy (May 2024) signalled the nation’s commitment to fostering a conducive environment for foreign investment and collaboration in the space sector, opening new avenues for growth and innovation. As much as $100 billion in annual FDI is expected in the space sector alone in the next few years.
Image Courtesy: PIB
The anticipation surrounding the Draft Deep-tech Startup Policy, Space Bill, and IPR Policy further accentuates India’s commitment to fostering innovation and entrepreneurship, emphasizing private sector facilitation amidst growing demand in deep-tech sectors.
MARKET PROJECTIONS AND ECONOMIC IMPACT
The aforementioned policies have sparked a significant transformation in the space ecosystem, fostering a surge in space startups and benefiting numerous MSMEs and SMEs.
Seeing the unprecedented growth unfolding, the IN-SPACe charted a Decadal Vision and Strategy for the Indian Space Economy, according to which, the aspiration is to realize a $44 billion market potential over the next decade.
PRIVATE SECTOR’S CRITICAL ROLE IN INDIA’S SPACE GROWTH ASPIRATIONS
Private players play a crucial role in enhancing supply chain resilience in the space sector by driving innovation, diversifying supply sources, and fostering competition.
As ISRO celebrates the GSLV F14/INSAT-3DS mission, firms like Ananth Technologies Ltd (ATL) exemplify how private players bring agility and scalability, adapting quickly to market demands and technological changes, thereby ensuring the continuous and efficient progression of space missions and operations in India.
In the past six decades, the complexity of space missions has significantly increased, posing cost and sustainability as major challenges. Recent ISRO missions such as Chandrayaan 3 and Aditya-L1 Sun Mission have brought laurels to the Indian Space Programme with a notable involvement and active participation of the private sector.
The private sector has emerged as a formidable force in driving space missions, and as we look towards the future, a slate of upcoming missions including Gaganyaan, NISAR, Chandrayaan-4, Bharatiya Antariksha Station, and AstroSat-2, are to further elevate private sector contribution.
In the downstream sector, private players are crucial for fostering innovation in space-based applications and services, driving demand for the upstream sector. The global and Indian demand for satellite data, imagery, and space technology is soaring, utilized across various sectors. India is utilising space applications in almost all sectors such as infrastructure development, National Infrastructure Pipeline (NIP), the National Hydrology Project (NHP), the Gati Shakti National Master Plan for Infrastructure, the SVAMITVA scheme (Survey of Villages and Mapping with Improvised Technology), the AMRUT Smart Cities Mission, and the Clean Ganga Project among others.
The economic impact of geospatial technology domestically is estimated close to Rs 14,050 crore. As the geospatial industry emerges as a promising sector, the time is ripe for MSMEs, startups, and new entrants to explore opportunities for government tenders as the estimated expenditure generated by the government, the defence sector, and PSUs for availing geospatial services is close to $3 billion.
In parallel, there will be a requirement to enhance the capabilities in satellite communication, positioning, navigation, timing and Earth Observation to meet the growing demand of the private and strategic sector. The private players can participate in setting up ground stations for spacecraft. They can also venture into applications of space technology. Also, small satellite segments and component manufacturing are predicted to be emerging sectors for private participation.
CALL TO ACTION
Indigenous Technology Development: This initiative aims to reduce reliance on imports, cut down foreign exchange outflows, foster local innovation, strengthen the domestic economy, enhance self-reliance, and improve the competitiveness of Indian space enterprises. Additionally, integrating space manufacturing into defence-offset obligations could be transformative.
Funding and Investment: Implementing policies to attract venture capitalists and investors is the need of the hour as are significant funding opportunities for startups that could be generated by government procurements. The government needs to sign long-term purchase agreements to create a consistent and assured demand for space-based services in the Indian market. Equal opportunity in government procurement policies is crucial, ensuring fair access to all eligible entities regardless of size or ownership structure. Fair bidding processes foster competition, with public sector undertakings competing alongside foreign companies rather than solely with private firms.
Public-Private Partnership (PPP) Models: Public-private partnerships are pivotal for leveraging the strengths of both the sectors. The G20 Space Economy Leaders Meeting, hosted during India’s G20 presidency, underscored their role in fostering innovation and economic growth. Aligning partnerships with ISRO and NSIL encourages government-to-government (G2G) and government-to-business (G2B) collaborations, promoting synergy across research, manufacturing, and demand-driven approaches.
Demand generation for downstream: Promote policies aimed at stimulating demand for downstream applications and data, which in turn will drive the demand for upstream technologies. Prioritize the procurement of downstream products like satellite data analytics and remote sensing applications to foster innovation and economic growth. Integrate Geographic Information System (GIS) procurement into Government e-Marketplace (GeM) to streamline processes and improve efficiency.
International Collaboration Framework: Establish an International Collaboration Framework to foster partnerships with foreign space agencies, companies, and research institutions, aiming to enhance the market presence of Indian firms globally.
Standards and IPR: Intellectual property protection is crucial for developing successful space business models involving public and private collaborations. Standards and IPR ensure that innovations are safeguarded, encouraging investment and fostering a competitive environment.
Image Courtesy: PIB
In conclusion, India’s journey in the space sector has seen significant strides and strategic shifts. Unlike many other technology sectors, space requires immense skill, investment, and support to realize substantial returns in the marketplace. The emergence of vibrant private enterprises alongside pioneering missions led by ISRO underscores this dynamic landscape. India’s space industry thrives through collective buy-in from governmental agencies, regulatory authorities, and financial investors. With robust private sector participation, India’s space sector together with ISRO is poised for promising advancements and achievements in space technology, promising a bright future ahead with significant contribution to mankind.
*The writer is Chairman & Managing Director, Ananth Technologies, and President, Satcom Industries Association (SIA) of India. He can be reached at subbarao@ananthtech.com.
