Space Endeavour: New policy seeks to give an impetus to private participation

The recently released Indian Space Policy, 2023 has been widely welcomed by the industry. It is a forward-looking document that seeks to not only foster a commercial space ecosystem but also provide an impetus for India’s entry into the “second space age”. Industry leaders share their views on the new policy as well as the key challenges and opportunities in this area…

What are your views on the Indian Space Po­licy, 2023?

Lt General A.K. Bhatt (Retd), Director General, Indian Space Association

The Indian Space Po­li­cy, 2023 provides the much-needed clarity on multiple domains of space-related activities. It describes the functions of orga­ni­sati­ons such as the Indian National Space Promotion and Authorisation Centre (IN-SPACe), the Indian Space Research Or­ga­nisation (ISRO) and New Space India Li­mi­ted (NSIL). It most importantly empowers non-governmental entities (NGEs) to carry out activities in the entire spectrum of space. We are pleased with the policy because it will help in streamlining many processes.

It is a forward-looking policy for the Indian space sector which will help us in fulfilling the prime minister’s vision for the growth of the space industry. The number of opportunities that will open up for individuals and for the country as a whole will surely be marvellous. With this policy, we are confident that IN-SPACe and the De­partment of Telecommunications (DoT) will work speedily to ensure necessary cl­ear­ances for private players in India.

Anil Prakash, Director General, SIA-India

The space sector is qui­te upbeat about the new Indian Space Poli­cy, 2023 and as a not-for-pro­fit association of sp­a­ce industries, SIA-India echoes the sentiment. The policy allows for greater private sector participation in end-to-end space activities and this is expected to substantially increase the country’s share in the global space economy from less than 2 per cent to 10 per cent in the future. This will provide a much-needed impetus to the entire space ecosystem and also have a po­sitive impact on the socio-economic sec­tors, ranging from distance education, disaster management, rural connectivity and telemedicine to agricultural crop mapping and forecasting.

The policy structures the governance landscape and delegates responsibilities to different government institutions.  Having said that, it is just the beginning of a laudable initiative, and we expect that ISRO, IN-Space and NSIL will further come up with conducive procedures for engaging with the overall space industry under the aegis of the Department of Space.

Additionally, the policy aims to facilitate the sharing of technologies and best practices among NGEs and government entities, including private companies, whi­ch is the need of the hour. It also acknowledges the importance of an appropriate dispute resolution mechanism to address conflicts in the space sector. All these measures will contribute to the development of a thriving and cooperative space industry in the country.

How will the policy promote private sector participation in space communications? What will be the key opportunities?

Lt General A.K. Bhatt

The new space policy enables private companies to take part in end-to-end space ac­tivities, including building satellites, rockets and launch vehicles, as well as data collection and dissemination. The satellite communication industry relies heavily on efficient utilisation of the scarce and valuable spectrum resource and safeguarding it for space usage is crucial.

Administrative methods of spectrum allocation will allow the government to manage its use in a way that maximises its potential benefits for society, such as supporting national security, disaster management and multiple other usages. This glo­bally accepted method also provides grea­ter stability to industry stakeholders by offering longer-term spectrum access and reducing interference with other users, whi­ch would promote innovation and in­vest­ment in the space industry.

With a focus on demand-driven app­roa­ches, the policy aims to institutionalise and facilitate private sector participation as well as encourage it to invest in new infrastructure. The policy provides access to ISRO facilities for a reasonable fee. It is expected to highlight India’s ob­jectives and priorities and open up opportunities for start-ups in the domestic space sector.

Anil Prakash

The new space policy carries forward the prime minister’s vision, emphasising the revolutionary changes in the space sector since its opening up to the private sector and youth. It promotes self-reliance, innovation and collaboration with industries and start-ups as well as aims to create an enabling ecosystem for research, development, entrepreneurship and investments in education and training. It aligns with the vision of a self-reliant India achieving new heights in space exploration, technology and applications.

Private sector companies will have opportunities to offer national and inter­na­tional space-based communication ser­vi­ces, establish and operate ground facilities, including telemetry, tracking and commanding (TT&C) earth stations and satellite control centres (SCCs). They can utilise Indian and non-Indian orbital resources for space-based communication services and develop technologies and applications for satellite navigation, communication and remote sensing.

Moreover, it encourages the establishment of industry clusters, collaborations and partnerships between private sector entities and industry players both in India and abroad. This will open up avenues for the private sector to work towards becoming strategic partners in meeting global space requirements.

The key opportunities for the private sector in the space communications do­main include offering communication services to and from the Indian territory using space objects, manufacturing and operating launch vehicles, engaging in the commercial recovery of space resour­ces, and providing end-to-end services for the safe operations and maintenance of objects in space. These opportunities will empower private sector entities to ac­tively contribute to the growth and development of the space communications sector in India.

What are the issues that remain unaddressed? What is the future outlook?

Lt General A.K. Bhatt

The new Indian Space Policy, 2023 is a timely and bold initiative that demonstra­tes the country’s vision and capabilities in space, and has the potential to foster scientific progress, economic prosperity, and social welfare. To ensure that the satcom and geospatial domains within the space industry are well defined, it is important to establish clear, simple and specific gui­delines that address the technical complexities related to these verticals.

Some of the aspects that would help in fulfilling and enhancing the vision envisaged in the space policy are clarity on the method of spectrum allocation for space, a liberal foreign direct investment (FDI) policy and clarity on aspects of liability and insurance.

Spectrum for space is a shared resource and hence needs to be allocated by administrative methods as is globally done. It will help in the growth of the nascent space industry.

Liberalising the FDI policy in the spa­ce sector presents ample opportunities for private entities to secure capital. We are hopeful that the new FDI policy on space will be promulgated soon.

To address liability concerns and ensure the security and safety of space ob­jects, it is imperative for the govern­me­nt to establish regulations to govern these matters. By doing so, the government can promote responsible and safe space activities while encouraging the gr­owth and development of the space in­dustry. It is also crucial that the Space Activity Bill is tabled at the earliest after due consultations with all stakeholders. Being a spacefaring nation, we need to look at things from a larger perspective. The bill would provide us with essential legal legitimacy on an international level.

Anil Prakash

The policy is just the first step and much more needs to be done to make it operational. Each of the designated institutions mentioned in the policy needs to draft its policies, rules and procedures and we hope that this would be in line with the spirit of the main policy. Additional ministries and departments need to pitch in to enable FDI inflows, spectrum availability, regulatory certainty and ease of doing business.

While the current policy acknowledges the importance of spectrum, clear guidelines and regulations are necessary to ensure efficient and fair utilisation of this valuable resource.

Although India has more private players in the space sector compared to Chi­na, investments in domestic space start-ups are significantly lower than the funding acquired by major spacefaring nations or India’s contemporaries. The current space policy does not address the need for a clear and favourable FDI policy which is crucial to attract global funding and foster international collaborations in the Indian space sector.

Formulating favourable FDI policies would enable India to attract foreign in­vestors, facilitate technology transfer, kn­ow­ledge exchange, enhance its space capabilities, and become a leading player in the global space arena.

Without well-defined rules in place, there may be ambiguity regarding licensing requirements, safety standards, liability issues, intellectual property rights, and other critical aspects related to commercial space activities.

It is also essential to formulate a space policy that ensures national control over space assets, safeguards the country’s interests, and promotes its technological advancements and growth in the space sector. A policy with civil-military fusion would enable India to protect its strategic capabilities, prevent unauthorised access or interference, and maintain sovereignty and authority over its space sector. The country needs a comprehensive approach that combines policy, technology and infrastructure to develop space capabilities that merge both civilian and military needs. With the formation of the Defence Space Agency, we hope that a separate defence space policy will address this issue.

The future outlook for the Indian space sector is indeed promising, but it re­quires continued efforts and attention. The introduction of the Indian Space Po­licy is expected to be a catalyst for growth in the sector. However, to fully realise its potential, it is imperative for policymakers to prioritise the establishment of a stable regulatory and policy environment and ad­dress the aforementioned gaps. The Spa­­ce Activities Bill holds immense im­por­tance in this regard as it will provide the necessary legal framework to regulate and promote space activities, ensure compliance, and foster an environment conducive to in­novation and growth. Its im­plemen­ta­tion will be pivotal in facilitating the realisation of the Indian Space Policy’s objectives and enabling active participation of the private sector in space-related endeavours.