• UGI USER
  • Oct 12, 2023
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Space Industry

Q. Innovation in space technology is a key to positioning India as a major player in the global space arena. What are the challenges associated with India’s space industry?

 

Approach

  • Discuss about the Space Industry in India.
  • Discuss the challenges associated with India’s space industry.
  • Way forward. 

 Answer

India ranks among the top 5 space-faring nations of the world. India is globally recognized for building low-cost satellites and launch vehicles. The global space economy is estimated at ~US $440 billion.

Achievements of the Indian space industry

  • Growing budget: India’s total budgetary allocation for FY2022-23 towards the Department of Space was ₹13,700 crore.
  • Startups boom: As per Tracxn data, funding into the sector’s start-ups (in India) nearly tripled to $67.2 million on a year-over-year basis in 2021. There were more than 40 startups in India in early 2021 in various stages of developing their launch vehicles, designing satellites and other allied activities
  • Reliable satellite launcher: By 2019, India had launched more than 300 satellites for various foreign states. ISRO has a record on its name of launching 104 satellites in one go. The recent LVM launch is a further extension of it.
  • Growing Private sector participation: Reforms liberalizing the space sector and nondisclosure agreements came in the late 2010s, leading to the emergence of various private spaceflight companies such as Larsen and Toubro, Godrej aerospace etc.
  • Successful Interplanetary missions: ISRO has launched several interplanetary missions such as the Mars orbiter mission, Chandrayaan 1 and 2. Ambitious missions like Gaganyaan, and Aditya L1 are in the pipeline.

Challenges to the Indian space industry

  • Absence of a framework: The reason for the lack of independent private participation in space includes the absence of a framework to provide transparency and clarity in-laws.
  • Brain Drain: Another aspect to throw light on is the extensive brain drain in India, which has increased by 85% since 2005.
  • Policy bottlenecks: Brain drain can be linked to the bottlenecks in policies that create hindrances for private space ventures and founders to attract investors, making it virtually non-feasible to operate in India.
  • Security concerns from private activities: Government worries over knowledge sharing, launch methods, and satellite capabilities have led to a reluctance to allow private actors in the market due to security concerns.
  • Long gestation period: Many approval processes take a long time to complete. Approvals take around a year and a half. This comes at a time when the next three to four years are critical for the sector’s growth.
  • State control: The ISRO is directly controlled by the Department of Space (DOS), which is under the Prime Minister’s Office.
  • Licensing issues: Another regulatory worry is the licensing structure for satellite earth station gateways, which needs to be transformed to make it easier for any satellite operator to set one up.
  • Limited indigenization: Another challenge is promoting indigenous innovation. In the new global climate, the challenge for the country is to continue to benefit from this innovation.
  • Restricted FDI: Presently, FDI in space is allowed under government routes only for satellite establishment and operations. FDI in space is approved by the Government on a case-by-case basis and often this approval takes time.

Therefore, The future of the Indian space sector looks promising, with several major initiatives and projects underway. With continued support from the government and private sector participation, India is set to leave an indelible mark in the domain of space exploration and technology.