“We have achieved soft landing on the moon! India is on the moon!” these words of ISRO chairman Sreedhara Somanath, after the landing of Chandrayaan-III near the south pole of the moon, are now etched with golden letters in the Indian Space history.
On August 23 2023, India became the first country to land its unmanned moon mission’s lander module near the south pole of the moon, a historic milestone in a journey since India launched its first two-stage rocket, the first foray into space from Thiruvananthapuram. On August 15 1969, which was India’s 22nd Independence Day, under the trusted guidance of Vikram Sarabhai, INCOSPAR and TERLS, later became the Indian Space Research Organisation (ISRO), launched its first rocket, giving the Indian space program a developmental boost.
The success of the Chandrayaan- III Mission in 2023 bears testimony to the relentless commitment of Indian scientists who have always strived to venture into the unknown realms of our universe. This was made possible because of great individuals like Dr. Vikram Sarabhai, Prof. Satish Dhawan, Shri H.G.S. Murthy, Dr. Abdul Kalam, and Dr. EV Chitnis, a remarkable generation of Indian scientists and technologists who could have worked anywhere in the world but chose to come back to India in the early decades of Independence. It would not be wrong to credit them for inspiring the next generation of Indian scientists like Prof. U.R. Rao, Dr. Madhavan Nair, Dr. Kasturirangan, Dr. Radhakrishnan, Dr.Sivan and now, of course, we have Sreedhara Somanath. Along with them, the role of women scientists and technologists in space missions has been well documented. One hopes the government(s) and ISRO will continue to give them the status they deserve.
Since the space mission began, each has an inspiring story to tell. We should listen and appreciate each of them. The flawless soft landing makes India only the fourth country to achieve this feat and the first to reach the uncharted South Pole of Earth’s only natural satellite, the moon.
The monumental achievements in space that have filled the heart of every Indian with pride and raised the stature of India at the global level. Prime Minister Narendra Modi congratulated the Chandrayaan team and ISRO for their remarkable achievement from South Africa and later visited ISRO headquarters in Bengaluru to wish the scientists personally.
With this achievement, India is now a member of the Artemis Accords, the U.S.-led multilateral initiative to place humans on the moon by 2025 and advance human space exploration throughout our solar system’s broader vicinity. ISRO has undertaken many missions to the moon –Chandrayaan– I, II and III, and the failure of Chandrayaan-II – II became a stepping stone to the success of Chandrayaan-III – III. Moreover, India launched the solar observatory Aditya-L1 on September 02, 2023. The Polar Satellite Launch Vehicle (PSLV-C57) successfully launched the Aditya-L1 spacecraft from the Second Launch Pad of Satish Dhawan Space Centre (SDSC), Sriharikota.
ISRO was previously the Indian National Committee for Space Research (INCOSPAR), set up by the Government of India in 1962, as envisioned by Dr. VikramA Sarabhai. ISRO was formed on August 15, 1969, and superseded INCOSPAR with an expanded role to harness space technology. DOS was set up, and ISRO was brought under DOS in 1972. two or three people into low Earth orbit by the end of this year to emulate the legendary Rakesh Sharma, who orbited the planet on a Soviet spacecraft in 1984.
India largely owes its remarkable progress in space exploration to its first Prime Minister, Pandit Jawaharlal Nehru’s dedication to developing a scientific temper amongst the Indian people. The first announcement of Chandrayaan was made by the then Prime Minister, Atal Bihari Vajpayee, on August 15, 2003. We had Chandrayaan-II in 2019, and we had Chandrayaan-III in 2023. It shows the continuity in governance.
The prime objective of ISRO/DOS is developing and applying space technology for various national needs. ISRO has established major space systems for communication, television broadcasting and meteorological services, resources monitoring and management, and space-based navigation services to fulfil this objective. ISRO has developed satellite launch vehicles, PSLV and GSLV, to place the satellites in the required orbits.
Alongside its technological advancement, ISRO contributes to science and science education in the country. Various dedicated research centres and autonomous institutions for remote sensing, astronomy and astrophysics, atmospheric sciences and space sciences in general function under the aegis of the Department of Space.
ISRO’s Lunar and interplanetary missions and other scientific projects encourage and promote science education, besides providing valuable data to the scientific community, which enriches science. ISRO has its headquarters in Bengaluru. Its activities are spread across various centres and units.
Launch Vehicles are built at Vikram Sarabhai Space Centre (VSSC), Thiruvananthapuram; Satellites are designed and developed at U R Rao Satellite Centre (URSC), Bengaluru; Integration and launching of satellites and launch vehicles are carried out from Satish Dhawan Space Centre (SDSC), Sriharikota; Development of liquid stages including cryogenic stage is carried out at Liquid Propulsion Systems Centre (LPSC), Valiamala & Bengaluru; Sensors for Communication and Remote Sensing satellites and application aspects of the space technology are taken up at Space Applications Centre (SAC ) , Ahmedabad and Remote Sensing satellite data reception processing and dissemination is entrusted to National Remote Sensing Centre (NRSC), Hyderabad.
The activities of ISRO are guided by its Chairman, who would also be the secretary of DOS and Chairman of the Space Commission. This apex body formulates the policies and oversees the implementation of the Indian Space Programme. ISRO’s vision is to harness, sustain and augment space technology for national development while pursuing space science research and planetary exploration. Its mission is to design and develop launch vehicles and related technologies to provide space access.
Design and development of satellites and related technologies for earth observation, communication, navigation, meteorology and space science. Italsounder takes communication programmes for meeting telecommunication, television broadcasting and developmental applications. Satellite-based Remote Sensing programme for management of natural resources and monitoring of environment using space-based imagery.
Its mission includes developing space-based navigation systems and applications for societal development. Research and development in space science and planetary exploration and to promote and authorise private firms to play key roles in the global Space market.
Opportunities for the Private sector in Indian Space programs
To enhance the diffusion of space technology and boost the space economy within the country, DOS desires to encourage the participation of private companies in space activities. ISRO shall complement DOS in its objective of opening the space sector to private industries. In this regard, the following reforms are proposed in the mode of execution of space activities in the country: a. To enhance utilisation and maximise benefits from the space assets, it is proposed to change the approach from a “Supply Based Model” to
a “Demand Based Model”. NewSpace India Limited (NSIL) will act as the aggregator of user requirements and obtain commitments.
- NSIL to take ownership from DOS for operational launch vehicles, commercialise launches, satellites and services.
- Permit non-government-private entities (NGPEs) to conduct space activities through an Indian National Space Promotion and Authorization Center (IN-SPACe). The budget allocations for IN-SPACe have been increased yearly: 2021-22 Rs. 10 crore, 2022- 23 Rs. 33 crore, and 2023-24 it was Rs. 95 crore.
- ISRO will build capacity in the Space domain by developing new technologies and capabilities and enabling the sharing of facilities by NSIL and NGPEs.
- Announcement of Opportunities for NGPEs offering challenges in new domains of technology. Space-based applications/ services over the years have grown more than originally envisaged. Many new applications are being developed worldwide to meet the growing user demands and requirements. The activities are on a growth trajectory with huge commercial potential. “NewSpace: India Perspective,” a report by the Confederation of Indian Industry and Deloitte, the emergence of NewSpace in India has commenced a transformative era in the country’s space sector. NewSpace has a dynamic landscape that sees private-sector participation and technological advancements in the following five areas: regulatory landscape, financing trends, collaborations (both international and domestic), evolving NewSpace ecosystem, and enhancement of the socio-economic impact on the NewSpace era. This paradigm shift is reshaping the traditional boundaries of space exploration and utilisation, driven by a combination of factors that collectively pave the way for a thriving and innovative space ecosystem.
In India, many NGPEs have started engaging in space activities for commercial gains. The report states that many startups and industries have begun making launch vehicles and satellites and are eager to provide space-based services.
Participation of NGPEs, including academic institutions, startups and industries, in end-to-end space activities is expected to expand the space economy. The global space economy is currently valued at about USD 360 billion. Despite being one of a few spacefaring nations in the world, India accounts for only about 2% of the space economy. Over the last two decades, the private sector has played an increasingly important role in other spacefaring countries within the global space economy. With innovation and advanced technology, companies like SpaceX, Blue Origin, Virgin Galactic, and Arianespace have revolutionised the space sector by reducing costs and turnaround time. In India, however, players within the private space industry have been limited to being vendors or suppliers to the government’s space program.
A mechanism has been created where industries can approach IN-SPACe for utilising the ISRO facilities. It provides a level playing field and a favourable regulatory environment for players within the Indian private sector, allowing them to become independent actors in the space sector instead of solely vendors or suppliers to the government program.
Clear guidance has been provided that public sectors in the space domain will focus on enabling the transfer of matured technologies to industries to avoid reinventing the wheel. Industry can approach IN-SPACe to obtain new technologies in the space domain. The reforms have also given NSIL an important role in transferring technologies/ platforms from the public to the private sector. The reforms have strengthened the policymaking capacity of the Department of Space, and an exercise has been initiated to create a new business-friendly policy framework for the Space sector, covering remote sensing, satellite communication, navigation, technology transfer, space transportation, space situational awareness, human space flight, etc.
Today, India’s Space economy stands at about $ 8 billion, viz 2% of the global (market share). Still, the entire world is recognising the increased pace, so the conservative projections are $40 billion by 2040. A recent report by ADL (Arthur D. Little) points out that India could have the potential of $100 Billion by 2040. ISRO has launched more than 380 foreign satellites, earning more than 250 Million Euros and more than 170 Million US Dollars by launching American satellites.
To honour the scientists’ tireless work and inspire the next generation, the nation declared August 23 National Space Day and named the lunar point where Chandrayaan-3 landed ‘Shiv Shakti’. Prime Minister Modi referred to the experts’ estimates that India’s space industry will reach 16 billion dollars from 8 billion dollars in the next few years. While the government is working relentlessly for space sector reforms, the country’s youth is also making efforts as, during the last few years, the number of space-related startups has increased from four to about 150.
The thirst for more…
“The success of Chandrayaan III is not just India alone, but it belongs to all of humanity”, Prime Minister Modi remarked and underlined that the explorations of the mission will open new doors of possibilities for moon missions of every country. He stated that the mission would not only unravel the secrets of the moon but also contribute to overcoming the challenges on Earth. Buoyed by the success, the ISRO scientists are working on various projects with an additional zest and enthusiasm. Gaganyaan: ISRO’s most ambitious mission. India is planning to send its astronauts into space through this mission. Gaganyaan will have three space missions; the first two will be unmanned. A budget provision of Rs 9,023 crore has been made for this. XPoSat Mission: India will soon start work on the XPoSat Mission. This mission aims to study the dynamics of space sources. This satellite will study the dynamics of astronomical X-ray sources under extreme conditions. It will be the first mission to study the stars. Space Docking Experiment: Space docking technology refers to connecting two spacecraft in space to transfer humans from one spacecraft to another. Therefore, space docking is extremely important for the space station’s operation.
Recently, at the launch of the CIIDeloitte’ NewSpace: India perspective’ report at the International Conference on Space 2023, sharing his views on India’s space aspirations, Sreeram Ananthasayanam, Partner, Deloitte Touche Tohmatsu India, said, “India’s space sector stands on the brink of a transformative journey, with reforms poised to stimulate supply and demand in the space economy. The Government of India is unwavering in its commitment to enhancing technology diffusion into and nurturing a thriving space economy. The emergence of the NewSpace era in India promises to unleash a wave of innovation, entrepreneurship, and commercialisation marked by agile startups, flexible business models, and a focus on cost-effectiveness. The government’s forward-looking policies have paved the way for private entities to actively participate in core space activities. This marks a shift from a government-centric ecosystem to a much more democratised ecosystem where private efforts complement government efforts. The convergence of these efforts enables rapid innovation, cost-effective solutions, and newer possibilities.”
The report states that the downstream capabilities of the sector hold enormous potential, and a study on tapping the full extent of these capabilities is essential. Standardising market size estimates and benchmarking global initiatives form the cornerstone of this transformative journey, ensuring that the Indian Space Policy 2023 remains adaptive and impactful.
The Indian Space Policy-2023
The Indian Space Policy-2023 provides a comprehensive framework and vision for the future of the Indian space programme. It outlines a strategic approach that aims to augment India’s space capabilities in the following ways:
- Driving technological development to derive benefits using space technologies
- Deepening international collaboration within the contours of a thriving commercial space sector. This policy demarcates stakeholders’ roles and paves the way for significant advancements in the Indian space sector. It sets the stage for a promising future.
One of the key highlights of the policy is the emphasis on greater private sector participation throughout the value chain of the space economy. This opens up opportunities to engage in a wide range of activities, including communication services, remote sensing, navigation, satellite manufacturing, launch infrastructure, space mining and emerging use cases of space in everyday life. These opportunities will contribute to both the commercial and socioeconomic development of the nation as a whole.
Recent media reports revealed that an inter-ministerial discussion is going on to further liberalise foreign direct investment norms in the space sector to attract overseas players and private companies. There is huge scope for foreign companies to invest in India in this fast-growing sector.
FDI in Indian Space sector
Presently, Foreign Direct Investment (FDI) in the space sector is allowed up to 100 per cent in satellite establishment and operations through government routes only. The new FDI policy is expected to allow 100 per cent FDI in the space sector in three different sectors:
- Sub-system manufacturing
- Launch vehicle operations
- Satellite operations and establishments
Foreign investments in the three will vary from 49 per cent to 100 per cent. The FDI policy is expected to be released soon for implementation, which would allow facilitating overseas investment in NGEs. It creates growth opportunities for Indian companies and allows foreign companies to invest in the Indian space sector.
The success of the Chandrayaan-III spacecraft on the moon’s South pole has resulted in many G-20 countries expressing interest in possible collaborations or partnerships with India in the space sector.
As per the report, while the Indian government has started to provide tax impetus to the space sector, it needs to take more initiatives for tax exemptions/tax holidays/accelerated depreciation for companies directly or indirectly engaged in space sector activities so that the benefits are available to the entire value chain and there is no embedded tax cost.
“Within the space industry, governments often serve as the initial customers for numerous startups while acting as stable clients for companies engaged in strategic space and national security initiatives. …To enhance investor interest in the space sector, space agencies are fostering capital inflow, with companies securing government contracts, offering a sense of assurance to potential investors,” a report has stated. It has added that there is a need to create sustainable market demand for private startups, which contributes to establishing a robust personal space ecosystem in India.
According to Prashant Singhal, Emerging Markets TMT Leader EY, in a report said “Key drivers for investment in the Indian space segment are involvement of private players, lower costs for developing and launching satellites, promise of substantial Return on Investment (RoI) and technological advancement in the space industry. A conducive regulatory and policy framework will go a long way in building a robust ecosystem. At the same time, promoting ease of doing business is critical for investments to flow in the space domain.”
The Indian Space Association (ISpA), in collaboration with EY, developed a report in 2022 titled “Developing the space ecosystem in India: focusing on inclusive growth “. The report focuses on developing a holistic space ecosystem in India. The media reports state that the companies can take advantage of the already established supply chain of ISRO for manufacturing and testing satellites and rockets. Additionally, startups will be able to greatly benefit from experienced space scientists in India who have significant mission experiences and leverage world-class academic institutions. Overall, the startups focus on developing original IP for space-based products/services, capitalising on the gaps in the local market, and inherent understanding of local issues and challenges.
Spacetech startups
Spacetech startups in India can potentially scale up the solutions/ products across other emerging markets where challenges and requirements are similar to India. Space tech companies increasingly seek strategic partnerships to leverage and use each other’s expertise. However, the startup ecosystem is not without its share of challenges. Access to capital is the biggest challenge today. Historically, investors have treaded cautiously when dealing with the Indian space tech startup ecosystem. The lack of private participation in the space economy was a major deterrent. The report states that large-scale private investments in the upstream segment have been challenging due to higher entry barriers, strict regulation, and a high risk of failure.
But over the last few months, a slew of policy decisions following the success of the moon landing are likely to open up huge opportunities in the Indian space sector. India’s achievements are poised to reach beyond the lunar surface. India’s Mars Orbiter Mission, unofficially known as Mangalyaan, showcased ISRO’s ability to reach the Red Planet in our maiden attempt. The Mangalyaan spacecraft successfully entered Mars orbit on September 23, 2014, making ISRO only the first Asian and the fourth country in the world to do so, and it achieved this feat with unparalleled cost-effectiveness.
However, what truly sets ISRO apart is its ability to achieve these remarkable feats at a fraction of the cost compared to some of the world’s other major space agencies, such as NASA and the European Space Agency (ESA).
The emphasis on the indigenisation of critical components and reducing reliance on imports has been a crucial aspect of its cost-effective approach. It has indeed sparked discussions within the international space community. Taking a giant leap towards a brighter, more innovative and economically robust future in space exploration, the Indian Space Policy of 2023 welcomes private enterprises into the realm of space exploration.
It acknowledges that the private sector possesses the innovative spark, the entrepreneurial spirit and the financial acumen to propel India’s space ambitions to greater heights. The implications of this decision are profound.