India's Private sector Space industry

Source: Hindu

Backdrop:

Principal Scientific Adviser stated earlier this month that the government may soon come up with a new space policy to increase private sector participation in the industry.

Consultations have already been held and the final version of the policy would be referred to the Empowered Technology Group for further examination.

Importance of development space sector:

Enhancing space technology would be beneficial to bolster connectivity and combat climate-related implications through a more secure & effective means.
Satellites provide more accurate information on the weather forecast and assess long-term trends in the climate and habitability of a region.
They can serve as real-time monitoring and early-warning solutions against natural disasters like earthquakes, tsunamis, floods, wildfires, mining etc.
Real-time tracking can also serve multiple purposes in defence.
Satellite communication can reach more remote areas where conventional networks would require heavy complimenting infrastructure.
The World Economic Forum stated that satellite communication can help connect 49% of the world’s unconnected population.
The satellite communication service is the major category for investment in the space technology sector.
The space avenue is an integration of the aerospace, IT hardware and telecom sectors.

Position of India:

As per SpaceTech Analytics, India is the 6^th largest player in the industry with 3.6% of the world’s space-tech companies.
the US holds the leader’s spot with 56.4% of all companies in the space-tech ecosystem.
Other major countries include UK(6.5%), Canada(5.3%), China(4.7%) and Germany (4.1%).
The Indian Space Industry was valued at $7 billion in 2019 and aspires to grow to $50 billion by 2024.
India is the 1^st country to reach Mars’ orbit in its first attempt and at $75 million, way cheaper than western standards.

The majority of the 60-odd start-ups that are registered with ISRO are dealing with space junk/space debris management.

India’s total budgetary allocation for FY 2022-23 towards the Department of Space was 13,700 crore rupees.

Regulations for the private sector:

In June 2020, the Union government announced reforms in the space sector enabling private players to provide end-to-end services.
An announcement for the establishment of the Indian National Space Promotion & Authorization Centre(IN-SPAC) was made.
The task of promoting, authorizing, and licensing private players to carry out space activities is mandated.
Monitoring & Promotion Directorate oversees NGPEs (Non-Government Private Entities) as per prescribed regulations & reports back the resolutions, and corrections required.
New Space India Ltd(NSIL) is mandated to transfer the matured technologies developed by ISRO to Indian industries.
All of them are under the purview of the Ministry of Defence.
private sector’s involvement is believed to help spur investment and expertise in the realm which is capital-intensive & demands high technology.
The space sector reforms were made to provide a “level playing field” to private companies in satellites, launches and space-based services.

Conclusion:

The central idea was to bring forth a predictable policy & regulatory environment and additionally provide access to ISRO facilities and assets to improve their capacities.

Share to Social

UPSC Article