On
June 11 this year, India’s Prime Minister Narendra Modi inaugurated the
headquarters of the Indian National Space Promotion and Authorization Centre (IN-SPACe).
It was a significant step in the operationalization of reforms launched by the
Government of India to promote private sector participation in India’s space
sector, providing access to space assets, data and facilities, which were
hitherto entirely with the government entity, Indian Space Research
Organization (ISRO).
IN-SPACe
is an independent single-window agency, which will permit and oversee
activities of private enterprises in building and launching satellites, and
providing space-based services. It will evolve suitable mechanisms for sharing
of ISRO’s technologies and expertise at no cost or at reasonable prices, to
avoid reinventing the wheel. ISRO’s capital-intensive, high technology
facilities will be made available for use by private enterprises. In short, the
Indian government will, through IN-SPACe, ensure a level playing field for
private industry, with enabling policies and a friendly regulatory environment.
India’s space industry has recorded remarkable
successes over the past decades, in the face of a hostile external environment
(sanctions, export controls, technology denials) for much of the period of its
development. ISRO has developed end-to-end technologies for space-based
services and applications in various sectors.
It has indigenously developed sophisticated technologies of strategic
importance. It designs, builds and launches satellites for high
throughput communications, geo-imaging and high-resolution earth observation,
and operates an independent Indian stand-alone navigation satellite system
(NavIC). In scientific and developmental applications, the Indian space
programme is, in some respects, ahead of that of some of the more advanced
space-faring nations.
The global space industry today generates revenues of nearly
$400 billion. This figure is projected to grow to over $1 trillion by 2040
and $2.7 trillion by 2050. This growth will be driven by increasing demand for new
automation technologies and miniaturisation, resulting in cost, time and
quality benefits. Space technology is already
widely accessible, and more sophisticated versions will further widen its
reach, as new generation networks and enhanced satellite navigation services upgrade
connectivity with faster communication and high-resolution images. In addition
to Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin, a flourishing private space
industry has arisen, offering a range of space services.
India’s share in the global space market is miniscule,
despite rising demand. The reason is
that ISRO has had a near-monopoly over the supply of these services, and its
primary focus has been developmental and scientific applications for the use of
the government and its agencies.
The
demand for dedicated communication (Satcom) capacity, as well as Earth
Observation (EO) applications is rising rapidly. Large corporates are willing
to invest in their own satellite, thereby ensuring captive capacity for their
future needs. New applications like inflight and maritime broadband
connectivity, and government initiatives like Digital India and Bharatnet offer
new opportunities for companies in the Indian Satcom market. With growth in EO
technology, mining companies can replace their field equipment with
satellite-based analytical and monitoring tools.
As
of now, Satcom services’ demand in India is estimated at around $11 billion.
This does not reflect true demand, because of the supply-driven framework.
ISRO’s in-house capacity provides communication mainly to remote geographical
areas and islands, which terrestrial cables cannot access economically. Imported
satcom services are considerably more costly, thereby depressing demand. When
the private sector manufactures and launches satellites, the market will move
to a truly demand-driven situation. INSPACe will oversee the rollout of
policies to enable privately-owned communication satellites and ground stations,
with allotment of suitable orbital slots to them.
The
first important step in commercializing launch vehicle production was taken
with the award of a contract for manufacturing five Polar Satellite Launch Vehicles
(PSLVs) to a consortium of the public sector undertaking Hindustan Aeronautics
Limited and the private sector company Larsen & Toubro, for $103 million.
Earth
observation data for satellite imagery is also an under-provided market, since
regulations hitherto mandated that data requirement of customers should be
sourced only through ISRO. Again, ISRO’s capacity is almost fully utilized for
the requirements of the government and its agencies. To meet the demand from
other users, it imports and resells data, making it more expensive. The new
policy will permit privately owned and operated space-based remote sensing systems
for activities within and outside India.
The
demand for geospatial data in India is projected to grow to nearly $12 billion by
2029-30. The government has recently taken measures to nurture and develop the
geospatial ecosystem of the country. It has lifted the requirement of licence
or prior approval for the collection, generation, dissemination, storage and/or
digitisation of geospatial data and maps. This will spur growth in downstream
applications by significantly reducing the price of high-resolution data and
its applications.
As
the repository of space technologies, ISRO has a crucial role to play in sharing
them with Indian industry. Indian entrepreneurs could also build technology
partnerships with foreign companies willing to invest in bringing satellite
technology to India.
ISRO
has equipped IN-SPACe with a technical lab with state-of-the-art equipment for
design, fabrication, integration and testing of satellites, which will be
available to Indian companies. More modern facilities and infrastructure are to
be made available to the space industry.
The
use of space-based technologies in warfare, intelligence and defence has been highlighted
by recent conflicts in West Asia and Ukraine. Space-based systems for defence communications,
high-resolution imagery for target detection and other real-time information
are important defence needs. The secrecy involved in defence applications means
that these products have to be indigenously manufactured, serviced and
upgraded. There may be opportunities for reputed Indian companies in this
area.
There
has already been a rapid growth in space start-ups and companies upgrading manufacturing
capability in the space sector. An industry body, the Indian Space Association,
has been formed to promote the interests of this nascent industry and for
policy advocacy with the government and its agencies. This is an important role
at this stage, when the government, ISRO and the private space industry are all
seeking to evolve an optimal public-private partnership.
If
the reforms progress as projected, the Indian space sector should generate – in domestic sales and exports – at least USD
50 billion of revenues by 2025.
***
[The author, Distinguished Fellow of the Vivekananda
International Foundation, is a former diplomat.]
-
Amb. P. S. Raghavan