ETtech Explainer: Will India’s space policy launch startups into orbit?

During the 1960s, India’s space programme was seen as a white elephant by many. It was a turbulent decade in India’s history as the two wars with China and Pakistan had drained the country’s coffers.

But within two decades, the Indian Space Research Organisation (ISRO) launched its first experimental satellite vehicle, called Satellite Launch Vehicle-3 (SLV-3). This made India the sixth nation to launch its own satellite into space. Then in 1993, ISRO joined an elite list of six space organisations that have sent an orbiter to the moon.

In 2017, the Indian Department of Space (DOS) released the Draft Space Activities Bill, which set regulations and goals for the private space industry, after several startups expressed interest in space activities called for regulations.

Three years later, on June 26, 2020, the government announced that private enterprises would be allowed to participate across all phases of space activities.

Then in June 2022, Principal Scientific Advisor Ajay Kumar Sood told PTI in an interview that the government was finalising the Space Policy 2022 and would unveil it soon. “ “We have not tapped the full potential of this sector. In 2022, the space sector is witnessing what the information technology sector experienced in the 1990s. We will have our own SpaceX in the next two years,” he said.

The global commercial space sector is worth $360 billion. At $7 billion, India’s share works out to around 2%. By boosting private participation in the commercial space sector, the country is looking to substantially increase this to $50 billion or 10% by the end of the decade.

What are IN-SPACe and ISpA?

In 2020, the government announced the formation of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the Indian Space Association (ISpA).

IN-SPACe will administer the involvement of private players in the Indian space sector, giving ISRO time and resources to focus on spatial research & development, technology innovation, exploration, and human spaceflight.

ISpA on the other hand will help private players conduct independent space activities, and ease services.

The private sector will use technology developed by ISRO, which will also provide regulatory and policy inputs to the sector, along with support for startups and space-oriented academia.

How will private firms improve India’s space programme?

Apart from space missions, ISRO’s resources are occupied with the increasing need for satellite data and imagery for weather, agriculture, transport and urban development.

If private firms take charge of the commercial side of the space programme, ISRO ill be able to use all its resources for research and development, interplanetary exploration, and strategic launches.

“With the opening up of the space sector, there could be dedicated satellites for various sectors such as agriculture, education, disaster management, ecommerce applications,” Sood said.

Companies are champing at the bit

Since the opening up of the space sector to private sector players two years ago, more than 55 startups have registered with ISRO and the Department of Space, Union Minister of State For Science and Technology Jitendra Singh said. India has more than 100 spacetech startups in total.

Of the 55 proposals received by ISRO, 29 are satellite-related, while 10 are for space applications and products, Singh said.

Consortiums led by Adani Group and L&T and Bharat Heavy Electricals Limited (

) have signed up to build five launch vehicles.

Anil Prakash, director general of SatCom Industry Association of India (SIA-India), an industry body, said the upcoming space policy would define the transfer of technology regulations, enabling private startups to use existing ISRO’s infrastructure and build on it. This would streamline both costs and deployment time, allowing startups to scale, he added.

Some have taken their first steps

In June, ISRO’s Polar Satellite Launch Vehicle (PSLV)-C53 created history by carrying payloads from two private Indian space startups to

in India’s first official public-private collaboration in the space sector.

Bengaluru-based Digantara Aerospace and Hyderabad-headquartered Dhruva Space recently launched a rocket carrying Digantara’s ROBust Integrating (ROBI) proton fluence meter and Dhruva Space’s satellite orbital deployer on the (PSLV)-C53 mission.

Digantara’s ROBI is not only the world’s first commercial space-based weather system but also the smallest, the company claimed.

Dhruva Space meanwhile, developed satellite deployment systems that are compatible with ISRO’s PSLV launch vehicles – one of the most important aspects of satellite deployment.

What are the challenges?

Though the government has taken steps to boost private-sector participation in space, my companies have said the large number of approvals required remains a huge barrier.

According to the Indian Brand Equity Foundation (IBEF), in 2017, Hughes, a US-based company, announced a $500 million satellite communications system in India. To date, the company has not received any approvals or an expected timeline.

Another challenge is the lack of clear, specific, and streamlined regulations.

Long way to go

Over the past two decades, private companies such as Virgin Galactic, SpaceX, Blue Origin, and Arianespace have revolutionised the space sector by reducing costs and turnaround times. However, in India, private enterprises are limited to being mere suppliers to the government’s space programme.

Though private startups such as Agnikul Cosmos, Skyroot Aerospace, Pixxel, and Dhruva Space are all expected to launch their respective missions this year, India is still at a nascent stage in the private space race, well behind other nations.

The government and private firms are hoping the Space Policy 2022 will succeed in bridging this gap.