• UGI USER
  • Feb 23, 2024
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THE NEXT FRONTIER

Syllabus :

GS 3 : 

  • Achievements of Indians in Science & Technology; Indigenization of Technology and Developing New Technology.
  • Awareness in the fields of IT, Space, Computers, Robotics.

Focus :

  • Space exploration’s evolution from a romantic notion to a realm of financial, socio-economic, and geopolitical significance has shifted perceptions.
  • Private sector involvement has transformed space endeavours, challenging the monopoly of national agencies.
  • India’s recent reforms and initiatives, such as the establishment of IN-SPACe, reflect a shift towards embracing private sector participation in the space sector.
Source: CivilsPedia

Private Startups in Indian Space Industry:

  • Current Landscape:
  • The Indian Space Association (ISpA) reports 102 space startups in India.
  • Key startups include Digantara, Bellatrix Aerospace, Tathya Earth, Skyroot, and Agnikul Cosmos.
  • Startup Initiatives:
  • Digantara focuses on space debris tracking.
  • Bellatrix Aerospace specializes in aerospace manufacturing.
  • Tathya Earth utilizes deep learning for satellite imagery analysis.
  • Skyroot pioneers in building Vikram rockets.
  • Agnikul Cosmos achieved success with a 3D-printed rocket engine.
  • Market Challenges:
  • A crucial challenge for the Indian space industry is ensuring a stable market.
  • Traditionally, the government provided demand, while ISRO supplied services.
  • Private sector entry complicates market dynamics, raising uncertainty.

Significance of Private Player Involvement:

ISRO Enhancement: Private involvement allows ISRO to focus on advanced technologies and exploration missions.

 Resource Pool Expansion: Private sector participation brings new resources and talent to the space industry.

 Opportunities for Exploration: Planetary exploration missions will be open to private participation.

  1. Resource Utilization: Increased access to space assets enables better utilization of India’s space resources.
  2. Economic Growth: Private sector engagement boosts India’s standing in the global space economy, fostering technological growth and employment opportunities.

Liberalization of FDI:

  • FDI in Manufacturing:
  • The government permits 100% FDI in manufacturing components and systems/sub-systems for satellites.
  • This move aimed to attract foreign investment and technology transfer to bolster India’s manufacturing capabilities in the space sector.
  • Satellite Operations:
  • Allows up to 74% FDI in satellite manufacturing, operations, and data products.
  • By liberalizing FDI norms, the government sought to encourage private sector participation in satellite operations, data analytics, and related services.
  • Launch Vehicles: 
  • Permits up to 49% FDI in launch vehicles, space ports, and corresponding systems.
  • This decision aimed to attract foreign investment in space launch infrastructure and technology, supporting India’s ambitions to become a competitive player in the global launch market.
  • Stimulating Private Sector Contributions:
  • Government’s move aims to encourage private space flight operators, technology developers, and application designers.
  • By opening up the space sector to private investment, India seeks to leverage the expertise and resources of the private sector to accelerate innovation and drive economic growth.

Geostrategic Implications:

  • Competing with China: 
  • India’s liberalization aligns with ambitions to compete with China’s advanced space program.
  • China’s rapid advancements in space technology and exploration have raised concerns about India’s competitiveness in the global space race.
  • Foreign Investments: 
  • India’s less strained foreign ties provide an opportunity to attract foreign investments compared to China’s challenges due to belligerent foreign policies.
  • The government’s decision to liberalize FDI norms aims to capitalize on India’s geopolitical advantage and attract investment from countries seeking alternatives to China.
  • Potential for Growth: 
  • Investments can bolster India’s space economy, enhancing access to talent and capital for startups and promoting local manufacturing.
  • By attracting foreign investment, India can create new opportunities for growth and innovation in the space sector, contributing to economic development and technological advancement.

Government Steps to Inclusion of Private Players:

  • New Space India Limited (NSIL):
  • NSIL facilitates private sector involvement in high-tech space activities.
  • Draft National Space Policy 2020:
  • Encourages public-private partnerships in space research and exploration.
  • Humans in Space Policy 2021:
  • Aims to involve non-traditional players in space activities.
  • Indian Space Association (ISpA):
  • Launched in October 2021 to support private sector space endeavours.
  • Acts as a single-window agency for private space enterprises, supporting the government’s self-reliance and Make in India initiatives.

Key Reforms and Initiatives:

  • 2020 Reforms: India initiated state-led reforms opening the space sector to private companies. This step aimed to unlock the potential of private enterprises in driving innovation and growth in the space industry.
  • Geospatial Guidelines: Released to provide a regulatory framework for geospatial data usage. These guidelines aimed to streamline the utilization of geospatial data for various applications while ensuring national security interests.
  • Indian Space Policy: Introduced to guide the development and regulation of the space sector. The policy outlined the government’s vision for space exploration, emphasizing collaboration with the private sector and international partners.
  • Establishment of IN-SPACe: Indian National Space Promotion and Authorisation Centre established to facilitate private sector engagement. IN-SPACe serves as a regulatory body responsible for licensing and monitoring private space activities, fostering a conducive environment for innovation and investment.
  • Telecommunications Act 2023: Amendments facilitating satellite broadband services and other advancements. The Act addressed the evolving needs of the telecommunications sector, enabling the deployment of satellite-based infrastructure to enhance connectivity across the country.

Challenges and Way Forward:

  • Regulatory Clarity:
  • Government needs to maintain a clear regulatory environment and reduce red tape to sustain private sector growth.
  • Uncertainty and bureaucratic hurdles can deter investment and innovation, hindering the development of the space industry.
  • Public Support:
  • Increased public support and easing access to foreign markets are essential to sustain India’s momentum in the space sector.
  • Government initiatives to raise awareness about the benefits of space exploration and encourage public-private partnerships can foster a supportive ecosystem for space innovation.
  • Balancing Opportunities: 
  • Efforts are needed to strike a balance between upstream and downstream opportunities to maximize benefits for the sector’s growth.
  • While upstream activities such as satellite manufacturing and launch services offer significant economic potential, downstream applications such as satellite data analytics and remote sensing have broader societal implications and should receive adequate attention in policy planning and implementation.

Conclusion:

In conclusion, India’s bold reforms in the space sector, including liberalizing FDI norms and fostering private sector participation, signal a transformative shift towards innovation and growth. By leveraging private investments and fostering a conducive regulatory environment, India can accelerate its journey towards becoming a competitive player in the global space industry. This strategic approach is essential to harnessing the full potential of space exploration for economic development and technological advancement.

Source:

https://www.google.com/amp/s/www.thehindu.com/opinion/editorial/the-next-frontier-on-indias-space-sector/article67874992.ece/amp/

Mains Practice Question:

Discuss the evolution of space exploration from a romantic notion to a realm of financial, socio-economic, and geopolitical significance. Examine the significance of private sector involvement in the Indian space industry, citing examples of startups and recent reforms.