Why in News:
Space regulator Indian Space Promotion and Authorisation (IN-SPACe) chairperson Pawan Kumar Goenka said that the long-awaited foreign direct investment (FDI) policy for the space sector is undergoing the “last leg of processes” and is expected to be out soon.
1. First Space Age
• ISRO as the sole player: During the first space era, the Indian Space Research Organisation (ISRO) controlled and managed the country's space sector as the sole player in the market. The private sector's involvement was limited to building ISRO systems and components in accordance with their designs.
• Limited Commercialization: At this time, India's space programme concentrated mostly on creating space technology and applications for government initiatives like meteorology, remote sensing, and communication satellites.
• Minimal Private Investment: The government supported the majority of ISRO's research and development activities, and the private sector made very little investment in the space industry.
• Technology Acquisition: India focused on developing its own space capabilities during the first space age while acquiring space technologies from other nations.
2. Second Space Age
• Emergence of Private Sector: With the establishment of the private sector, the licensing of commercial television channels, the rapid growth of the Internet, mobile telephony, and the invention of the smartphone, India entered into the Second Space Age.
• Increased Commercialization: The private sector's involvement has increased commercialization, with companies such as Antrix Corporation, Pixxel, and Skyroot Aerospace, among others, contributing to the growth of India's space industry.
• Government initiatives: The Indian National Space Promotion and Authorization Centre (IN- SPACe), founded as one of the government's attempts to encourage private sector involvement in the space industry, intends to ease and regulate private sector participation in space operations.
• New Horizons: India's space program now offers more opportunities as it enters to the Second Space Age with private companies in charge of creating ground-breaking technology including miniscule satellites, reusable launch vehicles, and satellite propulsion systems.
History of Space Policies in India
1. Early Space Policy: India enacted its first space policy in 1972, shortly after the country's first successful satellite launch in 1975. The policy prioritized peaceful applications of outer space, scientific research, and national development through the employment of space technology.
2. Liberalization and Privatization of the Space Sector: In the 1990s, India began to liberalize and privatise its space sector, allowing for greater private sector participation. This resulted in the growth of numerous commercial space enterprises and increased industry competitiveness.
3. Indian National Space Policy 2000: Aiming to make space technology an engine of economic growth and development, India's National Space Policy was adopted in 2000. The policy also placed a strong emphasis on global cooperation in space exploration and peaceful uses of outer space.
4. New Space Policy (2010s): In order to encourage private sector participation in space operations, the Indian government issued the New Space Policy in 2011. The policy promoted the establishment of space startups, increased private sector participation in space operations, and developed a regulatory framework for space governance.
5. Draft Space Activities Bill: In 2017, the Indian government presented a Draft Space Activities Bill with the purpose of regulating the country's space economy and laying the legal groundwork for private sector engagement. The bill tackles issues such as space object liability, licensing, and registration.
6. Recent Developments (2020s): In 2020, the Indian government announced the establishment of the Indian National Space Promotion and Authorization Centre (IN-SPACe), which will function as the sector's regulating authority.
• The recent, successful flight of the Small Satellite flight Vehicle (SSLV) and the establishment of the Defence Space Agency are significant milestones in India's space policy.
7. Indian Space Sector Vision 2030: The Indian Space Sector Vision 2030, released in 2019 by the Indian government outlines the nation's space objectives for the following ten years. The objective is to boost international cooperation in space exploration and technology, and expand the space economy to $50–$70 billion in India, and create jobs.
India's Space Economy
1. Stats Related to the Space Economy:
• Growing space economy: Due to double-digit annual growth in satellite-based services, India's space economy, currently valued at more than $9.6 billion, is expected to reach $60 billion by 2030. This development is estimated to generate approximately two lakh new work opportunities.
• Expanding Satellite Manufacturing Capabilities: India’s satellite-manufacturing opportunity will reach USD 3.2 billion by the year 2025 (in 2020 it was USD 2.1 billion)
• Private Space Companies: With over 400 private space companies, India ranks fifth globally in the number of space companies. According to the Economic Survey of India, there have been over 100 active space companies since 2012.
2. Growth Potential of Indian Space Economy
• Employment Generation: With an enabling environment, the Indian space industry could grow to $60 billion by 2030, directly creating more than two lakh jobs.
• Promising Sectors: The Indian space sector is interested in industries such as broadband, OTT, and 5G. These industries are expected to make substantial contributions to the Indian space economy and have significant room for expansion.
• Cost-effective Satellites: India has a reputation for manufacturing low-cost satellites, and it is now sending foreign satellites into orbit. This has aided India in establishing a strong footing in the global space market.
• Technology Development and Space Applications Programs: Technology advancement and space applications programmes have been given top priority in India's space programmes by ISRO to support sectors including agriculture, disaster management, and communications.
Need of the Space Policies in India
1. Enhancing Surveillance and Defense Capabilities
• Strengthening surveillance: By utilizing satellite-based technologies for border monitoring, maritime domain awareness, and early warning systems, space policies play a crucial part in enhancing India's surveillance capabilities. These techniques aid in safeguarding national security and spotting potential dangers.
• Increasing defence capabilities: Space policies permit the creation and use of defense-related space technology including communication networks and surveillance satellites. By enhancing situational awareness, command and control, and intelligence gathering, these capabilities increase India's readiness for defence.
• Space-based missile defense: The expansion of space policy encourages the development of space-based missile defence systems, which serve as a powerful deterrent to ballistic missile threats. Such policies encourage the study, development, and deployment of sophisticated missile defence equipment.
2. Promoting Technological Innovation and Economic Growth
• Fostering technological innovation: Space policies support the space industry's R&D, which fuels technological innovation. They act as a forum for cooperation between academic institutions, research centres, and businesses, fostering the advancement of cutting-edge space technologies.
• Stimulating Economic Development: Space policies are critical for the development of India's domestic space sector. These policies foster the development of indigenous capabilities in space research, manufacturing, and technology by providing a legislative framework and incentives.
• Boosts space-related businesses: Well-defined space policies promote both domestic and foreign investments and fosters an environment that is beneficial for space-related businesses. They support the growth of satellite communication, remote sensing, navigation services, and space travel, all of which promotes economic development and job creation.
• Harnessing Satellite-based Applications: Space policies enable the use of satellite-based technologies to address concerns such as disaster management, resource mapping, and environmental pollution monitoring. These applications provide essential information for developing policies, making decisions, and promoting sustainable growth.
3. Facilitating Collaboration and Diplomacy
• Engaging in international partnerships: Space policies make it easier to work with foreign nations on space-related projects. They facilitate joint missions, data sharing, cooperative technologies, the development of diplomatic ties, and the application of collective knowledge for mutual benefits.
• Ensuring compliance with international treaties: India upholds its reputation as a country that responsibly uses outer space, which also encourages the peaceful and cooperative use of space. Space policies uphold the international treaties and agreements governing space activity.
• Leveraging global resources and expertise: Space policies encourage engagement in international space programmes and organisations, allowing access to resources, data, and knowledge from around the world. India's skills in space exploration, scientific research, and technological growth are improved by collaboration with other space entities.
Key Features of the Indian Space Policy 2023
• Vision for a flourishing commercial presence: The space policy recognizes the importance of the private sector as a critical stakeholder in the space economy. It envisions enabling and encouraging a thriving commercial presence in space, indicating a shift towards greater involvement and participation of private players.
• Clear roles and responsibilities: The policy establishes clear roles and responsibilities for various entities. It defines the functions of the Department of Space, ISRO, Indian National Space Promotion and Authorization Center (IN-SPACe), and NewSpace India Limited (NSIL), which serves as the commercial arm of ISRO.
• ISRO's focus on R&D: The policy states that ISRO will cease contributing to the creation of operational systems. It will instead focus on R&D in cutting-edge technologies, developing newer systems, and producing space objects to meet national objectives.
• Participation of non-government entities (NGEs): NGEs, including the private sector, are allowed to take part in all facets of the space industry under the policy. It also includes providing related services including communication, remote sensing, and navigation as well as establishing and operating space objects and ground-based resources.
• Stable regulatory framework: IN-SPACe is expected to establish a stable and predictable regulatory framework. It will act as a promoter by setting up industry clusters and as a regulator by issuing guidelines on liability issues. This framework aims to ensure a level playing field for NGEs.
• Opportunities for private sector players: By opening up the Indian space sector, the strategy seeks to provide opportunities for private sector businesses. They are advised to take a proactive role in promoting the growth and sustainability of the Indian space project. As a result, ISRO may concentrate on non-profit initiatives like space exploration and the research and development of cutting-edge technologies.
• Enhancing overall ISRO missions: With greater participation from non-government entities, including academia, research communities, startups, and industry, the policy is expected to enhance overall ISRO missions. This collaborative approach promotes innovation and brings diverse expertise to the Indian space program.
• Institutional setups: NSIL and IN-SPACe are two key institutional setups established to facilitate coordination between the public and private sectors. NSIL will handle strategic activities within the space sector in a demand-driven mode, while IN-SPACe will play a crucial role in coordinating between the public sector and private players.
• Framework for private sector use of ISRO facilities: The policy outlines a framework under which the private sector can access and utilize ISRO facilities for a nominal fee. This provision enables private players to leverage ISRO's infrastructure and resources for their space-related activities.
• Making Indian space program competitive: The participation of private players and their investment in new infrastructure will contribute to making the Indian space program more competitive and advanced. This promotes technological innovation and accelerates the growth of the overall space sector in India.
• ISRO's focus on research and development: The policy highlights ISRO's decision to focus primarily on research and development activities. Instead of operational and production work, ISRO will concentrate on developing new technologies, systems, and conducting research. This allows the private sector to handle routine production and launches, further facilitating their active involvement.
Distinguishing Features of the Space Policy 2023 Compared to Previous Policies
1. Emphasis on Private Sector Participation: The Space Policy 2023 recognizes the private sector as a crucial stakeholder in the space economy, highlighting its significance across the entire value chain. This marks a departure from previous policies that primarily focused on government-led initiatives and had limited involvement of the private sector.
2. Focus on Civilian and Peaceful Applications: In contrast to earlier policies, the Space Policy 2023 places a strong emphasis on utilizing space technology for civilian and peaceful purposes.
• With only one reference to 'security' in the document, the policy clearly indicates a shift towards prioritizing applications that benefit society, such as socio-economic development, scientific research, and environmental monitoring.
3. Restructured Roles and Responsibilities: The Space Policy 2023 introduces a strategic framework that assigns specific roles to different entities within the Indian space sector, including the Department of Space, ISRO, IN-SPACe, and NSIL.
• ISRO's role is redefined to focus primarily on research and development (R&D) activities, allowing it to concentrate on advanced technology, newer systems, and the realization of national space objectives.
• NSIL, established as ISRO's commercial arm, acts as the interface for industry interactions, conducts commercial negotiations, and facilitates technology transfer.
4. Induction of Non-Governmental Entities (NGEs): NGEs now have the flexibility to own, procure, or lease satellites, provide communication services domestically or internationally, disseminate remote sensing data in India or abroad, and engage in activities like designing and operating launch vehicles and establishing infrastructure.
5. Specified Role of IN-SPACe: IN-SPACe, established as a regulatory body, acts as a single- window agency for authorizing space activities by government entities and NGEs, ensuring compliance with safety, security, international obligations, and national interests.
Gap in Timelines and Roadmap of Indian Space Policy 2023
• Ambiguous ISRO Transition Timeline: The Space Policy 2023 lacks a clear timeline for ISRO's transition from manufacturing to research and development, causing uncertainty and delays in the implementation of the new focus.
• Missing Schedule for IN-SPACe's Regulatory Framework: There is no specified schedule for IN-SPACe to establish the regulatory framework, hindering effective authorization and oversight of space activities.
• Unclear Rules for Sustaining Start-ups: The policy fails to provide clear rules on foreign direct investment, licensing, and government procurement, impacting the growth and sustainability of new space start-ups.
• Inadequate Liability Framework: The policy lacks a comprehensive framework for addressing liability issues, compromising accountability and protection of stakeholders in case of accidents or violations.
• Lack of Legislative Authority for IN-SPACe: IN-SPACe operates without legislative authority, limiting its ability to effectively regulate space activities and ensure compliance.
• Absence of Dispute Settlement Mechanism: The policy does not establish an appellate framework for resolving disputes, potentially leading to prolonged conflicts and legal battles in the space sector.
Major Challenges Associated with the Indian Space Sector
1. Lack of Regulatory Framework and Commercialization Challenges
• Regulatory Void for Commercial Activities: The absence of a robust regulatory framework for commercialization in the Indian space sector creates uncertainties and challenges for private enterprises looking to enter the market. The lack of clear guidelines and policies hinders the growth and development of commercial space ventures.
• Risk of Monopolization: Without adequate regulations, there is a concern that the increasing commercialization of outer space could lead to monopolistic practices. This could potentially limit competition, restrict access for new entrants, and hinder the overall growth and innovation in the sector.
• Space Debris Management: The growing number of space missions and satellite deployments contributes to the accumulation of space debris. The lack of comprehensive strategies and technologies for space debris management poses risks to operational satellites and spacecraft, potentially leading to collisions and damage.
2. Technological and Strategic Challenges
• Technological Dependence: The Indian space sector faces challenges in reducing its dependence on foreign technology and components. Limited indigenous capabilities in certain areas of space technology pose hurdles to achieving self-reliance and technological advancements.
• Strategic Competition and Geopolitical Factors: The global space industry is increasingly influenced by strategic competition and geopolitical dynamics. India faces challenges in navigating these complexities, particularly in relation to emerging space powers, such as China. Balancing national security concerns, international collaborations, and maintaining a competitive edge is crucial.
• Funding and Resource Constraints: Sustaining and expanding the Indian space program requires adequate funding and resources. The sector often faces challenges in securing consistent funding for ambitious missions, research and development activities, infrastructure development, and talent acquisition.
3. Security and Policy Considerations
• Weaponization and Militarization Concerns: The weaponization and militarization of outer space pose significant challenges to international security and stability. The Indian space sector must address these concerns and contribute to efforts aimed at preventing an arms race in space.
• International Collaboration and Cooperation: Maintaining and strengthening international collaborations is vital for the Indian space sector's growth and progress. Challenges may arise in navigating diplomatic relations, aligning interests, and ensuring equitable participation in global space initiatives.
• Policy Framework and Governance: The development of a comprehensive and adaptive policy framework is crucial to address the evolving challenges in the space sector. Ensuring effective governance, regulatory oversight, and clear guidelines for space activities will facilitate sustainable growth and responsible exploration.
Way forward
1. Strengthening Regulatory Framework
• Comprehensive Policy Review: Conduct a comprehensive review of the Space Policy 2023 to identify gaps and inconsistencies. Update the policy framework to address emerging challenges and provide a clear roadmap for the future development of the space sector.
• Enhanced Public-Private Partnership: By fostering a supportive climate for public-private partnerships, strengthen cooperation between the public and private sectors. To advance the expansion and commercialization of the space sector, promote investment, innovation, and knowledge sharing.
• Robust Licensing and Compliance: Establish a robust licensing framework that ensures compliance with international standards and best practices. Streamline licensing processes, provide clear guidelines, and facilitate transparency to attract investments and facilitate responsible space activities.
2. Promoting Technological Advancements
• Research and Development Investment: Allocate adequate resources and funding for research and development (R&D) initiatives in the space sector. Foster collaboration between academia, industry, and research institutions to drive technological advancements and innovation.
• Skill Development Programs: Implement skill development programs to enhance the capabilities of the workforce in the space sector. Offer training and educational opportunities to nurture talent, promote interdisciplinary skills, and bridge the existing skill gaps.
• Encourage Startups and SMEs: To encourage entrepreneurship and a vibrant ecosystem, resources such as funding, infrastructure, and mentorship programmes should be made more accessible.
3. Strengthening International Collaboration
• Bilateral and Multilateral Partnerships: Forge strategic partnerships with other space-faring nations and international organizations to foster collaboration, knowledge exchange, and joint initiatives. Strengthen diplomatic ties to leverage expertise and resources for mutual benefits.
• Participation in Global Initiatives: Actively engage in global initiatives aimed at space sustainability, debris mitigation, and responsible space practices. Contribute to the development of international norms and guidelines to ensure the long-term security and sustainability of outer space activities.
• Space Data Sharing: Promote open data policies and international cooperation in sharing space-related data. Facilitate the exchange of satellite data, research findings, and technological insights to foster scientific advancements and promote transparency.
4. Ensuring Security and Safety
• Space Situational Awareness: Invest in advanced space situational awareness capabilities to monitor space debris, satellite movements, and potential threats. Strengthen early warning systems and develop mitigation strategies to protect space assets and ensure the safety of operations.
• Cybersecurity Measures: Enhance cybersecurity measures to safeguard space infrastructure and systems from cyber threats. Develop robust protocols, encryption techniques, and information sharing mechanisms to prevent unauthorized access and ensure data integrity.
• International Cooperation on Security: Engage in international cooperation on space security issues to address common challenges and foster trust among nations. Participate in dialogue and forums that promote confidence-building measures and enhance security in outer space.
Mains Practice question:
India made modest entry in the first space age and now awaiting lift off in the second space age, Space policy 2023 is a forward looking document. Comment
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