Commercialization in India’s Space Sector

Why in news?

In order to secure strategic autonomy in its access to outer space, it’s high time for India to tap the potential of private players in space sector.

What is commercialization of space sector in India?

• Commercialization in India's space sector refers to the increasing involvement of private companies in space activities.
• It is enabled by policy changes that allow them to develop and launch satellites, provide space-based services, and compete in the global market.
• Antrix Corporation Limited (ACL) – It was established in 1992 is a wholly owned Government of India Company under the administrative control of the Department of Space.
• It is the Marketing arm of ISRO for promotion and commercial exploitation of space products, technical consultancy services and transfer of technologies developed by ISRO.
• NewSpace India Limited (NSIL) – It is established in 2019 as a public sector undertaking of the Government of India.
• To spearhead commercialization of space products including production of launch vehicles, transfer to technologies and marketing of space products.
• In-space – It was established in 2020 and functions as an autonomous agency in Department of Space (DOS).
• It acts as a single window agency for all space sector activities of private entities.
• Emerging space startups – Several private space companies have emerged in India, including Skyroot Aerospace, Agnikul Cosmos, Pixxel and Bellatrix Aerospace.

What is the importance of commercialization of the space sector?

• Developing reusable & heavy lift capability rockets – As India is still depend on foreign nation in launching heavy satellites, there is a need for indigenous reusable and heavy lift capability rockets.
• For instance, GSAT-N2 is a communication satellite built by ISRO was launched on SpaceX’s Falcon 9 rocket.
• Economic growth – India’s space industry, valued at approximately 7 billion USD, has the potential to grow exponentially through increased private sector participation.
• Global competitiveness – India’s cost-effective launch capabilities, demonstrated by missions like Chandrayaan-3 and Mangalyaan, make it an attractive destination for international satellite launches.  
• Expanding these services commercially can enhance India’s share in the 440 billion USD in global space economy.
• Job Creation and Skill Development – The growth of private space firms will create jobs in aerospace engineering, satellite design, and data analytics.
• Strategic independence – Commercialization reduces reliance on foreign providers for satellite services and technologies, strengthening India’s autonomy in critical areas such as communication, navigation, and defense.
• Increased innovation – Partnerships between ISRO and private firms can expedite the development of advanced technologies like reusable rockets and small satellite launchers.
• Infrastructure development through PPP– Commercialization encourages the development of state-of-the-art facilities, such as satellite assembly units and launch pads, through public-private partnerships (PPP).
• Increased FDI inflows – Commercialization will increase foreign direct investment (FDI) inflows in the space sector.
• India now permits up to 100% FDI in space sectors like satellite manufacturing and operation, satellite data products, and ground segment and user segment.

What are the measures needed?

• Strengthen policy framework – The government must implement further supportive policies to encourage private sector involvement.
• Providing milestone-based funding mechanisms – It can reduce risks on private players as funding will be provided only after they meet certain objectives at every stage.
• It will ensure accountability and reduce cost overruns.
• Leveraging the private industrial base – In parallel to developing the NGLV, the Department of Space can give out contracts for reusable, heavy-lift rockets to capable private players to foster competition and capacity-building.
• Promote global collaboration – Indian companies should be encouraged to explore partnerships with global firms for technology transfer and co-development of advanced systems.
• This can accelerate the development of indigenous capabilities.
• Develop infrastructure – Investment in testing facilities, launch pads, and research centers is crucial.
• Shared infrastructure can reduce entry barriers for startups and smaller firms.
• Focus on education and training – Building a skilled workforce is essential.
• Universities and research institutions must align their curricula with the needs of the space industry to ensure a steady pipeline of talent.
• Public-private partnerships – ISRO’s expertise can complement the agility and innovation of private firms through well-structured collaborations.
• Joint ventures can address complex challenges and accelerate project timelines.

Reference

       The Hindu | Deepening India’s Steps as a Key Space-Faring Nation