Current Affairs 2022: Reforms in Space Sector of India

By Ankita Rawat

Recently Goverment of India opened up the space sector for private players. Read further to know about the reforms in Space Sector of India.

With cost-effective satellites, the Indian space sector is globally recognized. India comprises 2-3% of the global space economy which is expected to increase its share more than 10% by 2030 at 48% CAGR, the global space economy is evaluated at US$ 423 billion.

Main Reforms in Space Sector of India

Enabling and promoting private enterprises to implement independent space activities-

The Government of India has approved the participation of private sector enterprises across all stages of space activities. The govt approved the formation of IN-SPACe (Indian National Space Promotion and Authorisation Centre) to support private players in becoming independent instead of being the only vendor of suppliers.

Rising participation of private sector enterprises in the Indian space sector-

Several start-ups and private companies are showing interest in space services and activities because various government initiatives have been announced. As per a global report published on June 21, India has 368 private sector firms that make India 5th in the world after the US, Canada, UK, and Germany. India with 368 private space firms is leading China (288), France (269), and Spain (206). As per ISRO’s Chairman, the number of private company proposals has increased by 30% in the space sector in 2021 from 22 proposals in 2020.
Approx 27 proposals have reached the Government of India from private companies for several space-related activities like building & operating satellites, developing launch vehicles, and establishing ground segments & research partnerships. For example, a consortium led by L&T and another by Adani Group, and Bharat Heavy Electricals Limited (BHEL) have bid to build 5 launch vehicles, this will be 1st-time companies outside ISRO will build end-to-end launch vehicles.

Inspiring young students and entrepreneurs-

NITI Aayog in collaboration with CBSE and ISRO has launched the Atal Tinkering Lab space challenge as part of the Atal Innovation Mission last year to boost the participation of young students and people in the Indian space sector. The Government of India is developing world-class learning facilities and space museums, students can develop interests, learn the basics of space technology, pursue careers in Science, Engineering, Technology, and Mathematics. STEM (Science, Technology, Engineering and Mathematics) is a new term in the Indian education industry and assist in developing problem-solving abilities and critical thinking among students.

Revising the FDI (Foreign Direct Investment policy to open investment opportunities for foreign companies-

As per ISRO Chairman, Mr K Sivan, the Government of India may announce a new foreign direct investment policy for the Indian space sector that will open huge investment opportunities for foreign companies. Also, he highlighted that with IN-SPACe, the government could establish a link between private sector companies and ISRO to utilize Indian space resources and expand space-based activities. All FDI investments are cleared by the government but the industry needs investments to be cleared from the automatic route.

Establishment of the ISpA (Indian Space Association)-

ISpA was launched by Indian Prime Minister, Mr Narendra Modi. This association will support private players to execute independent space-related activities, facilitate services and technology developed by ISRO to be used in the private sector, support start-ups, provide regulatory & policy inputs, MSMEs, and academia.

ISpA will assist the ‘Atmanirbhar India’ and ‘Make in India’ vision of the government to become a leader in the global space industry. ISpA will be a single-window agency and open the Indian space sector to private start-ups and enterprises.

Encouraging the public sector to focus on research & development activities-

IN-SPACe will monitor the participation of private players in the Indian space sector, ISRO will focus more on R&D, space exploration, technology innovation, and human spaceflight.
Transferring technologies developed by ISRO to industries for commercialisation-

An MoU (Memorandum of Understanding) was approved between the NewSpace India Limited (NSIL) and the Department of Space (DoS) in October 2020. The MoU will help NewSpace India Limited identify technologies developed by ISRO (that have the potential for commercialisation) and transfer them to external bodies in the private & public sectors, state and central government organisations, and academia. Under this MoU, NSIL has transferred nearly 363 technologies for commercialisation.

For example, this initiative was seen when India was fighting against the second wave of COVID 19 when ISRO developed three types of ventilators and transferred the technology for clinical practice. Also, platforms like Polar Satellite Launch Vehicle and Small Satellite Launch Vehicle have been identified for transfer to technology to the private sector.

Demand-driven approach for the development of space assets-

Reliance on space assets has enhanced considerably over the last few years in multiple industrial sectors. ISRO has moved from a supply-driven model to a demand-driven model for maximum utilization of space assets.

Sharing ISRO’s facilities with private players-

ISRO had allowed two satellites from the private sector and one from academia to be tested in the US Rao Satellite Centre, Bangalore, on February 21. Further, testing of 2 satellites happened at ISRO’s spaceport and rocket centre facilities in Thiruvananthapuram and Sriharikota. IN-SPACe is an independent nodal agency under the DoS to allow usage of ISRO-owned facilities by NGPEs (Non-Governmental Private Entities) and space activities.

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About the Author

  Ankita Rawat is doing graduation in BA(JMC) from JIMS Vasant Kunj, New Delhi.