Perspective: New Era in Indian Space Sector | 24 Nov 2022

Why in News?

Recently, the country’s first privately developed rocket, Vikram-S was successfully launched in a sub-orbital mission from the Sriharikota spaceport marking a new era in India’s space programme.

• The mission Prarambh marks the beginning of a private venture into the promising space launch market.

What is Vikram S?

• Background: The rocket has been developed by Indian space technology startup Skyroot Aerospace. It is named after Vikram Sarabhai, the founder of India’s space programme.
• Technology Used: It is a single-stage sub-orbital launch vehicle that would carry three customer payloads.
  • Sub-orbital flights are those vehicles that are travelling slower than the orbital velocity – meaning it is fast enough to reach outer space but not fast enough to stay in an orbit around the Earth.
    • It has been built using advanced technologies including carbon composite structures and 3D-printed components.
• Significance: It would help test and validate the majority of the technologies in the Vikram series of space launch vehicles.
  • Skyroot has been working on three different Vikram rocket versions.
    • The Vikram-I can launch with 480 kilograms of payload, whereas the Vikram-II is designed to do so with 595 kilos and Vikram-III has a 500 km Low Inclination Orbit launch capability with 815 kg.

Why is Development in the Space Sector Important?

• Combating Climate-Related Issues: Enhancing space technology would be beneficial to strengthen connectivity and combat climate-related implications through a more secure and effective means.
  • Satellites provide more accurate information on weather forecasts and assess (and record) long-term trends in the climate and habitability of a region.
  • Additionally, they can also serve as real-time monitoring and early-warning solutions against natural disasters such as earthquakes, tsunamis, floods, wildfires, mining etc.
• In Terms of Connectivity: As for connectivity, satellite communication can reach more remote areas where conventional networks would require heavy complimenting infrastructure.
  • It is thus argued that investment in this arena would foster positive carryover effects to other sectors as well.

Where does India stand in the Global Space Market?

• As of 2021, according to SpaceTech Analytics, India is the sixth-largest player in the industry internationally having 3.6% of the world’s space-tech companies. U.S. accounts for 56.4% of all companies in the space-tech ecosystem.
  • Other major players include U.K. (6.5%), Canada (5.3%), China (4.7%) and Germany (4.1%).
• The Indian Space Industry was valued at $7 billion in 2019 and aspires to grow to $50 billion by 2024. The country’s standout feature is its cost-effectiveness.
  • India holds the distinction of being the first country to have reached Mars’ orbit in its first attempt and at $75 million — way cheaper than Western standards.

What is the Need for Reforms in the Space Sector?

• To Increase the Scale of the Sector:
  • ISRO is centrally funded and its annual budget is about Rs. 15,000 crore, and most of this is used in building rockets and satellites.
  • The size of the space economy in India is small. To increase the scale of the sector, it is imperative for private players to enter the market.
  • ISRO is planning to share knowledge and technology, such as manufacturing rockets and satellites, to all the private players.
    • The United States, Europe, Russia — all have space industries with big players like Boeing, SpaceX, AirBus, Virgin Galactic, etc.
• Reforms in Private Players:
  • There have always been private players in the sector, but this has been entirely in manufacture of parts and sub-systems. There is a need to provide a fillip to industry to be able to manufacture rockets and satellites.

What is the Significance of Public Private Partnership?

• Source of Investment: Private sector’s involvement in the long term, as with other commercial sectors, is believed to help spur investment and expertise in the realm which is capital-intensive and demands high technology.
• Fair Competition: The space sector reforms were made with the intention to provide a “level playing field” to private companies in satellites, launches and space-based services.
• Facilities & Capacities: The central idea was to bring forth a predictable policy and regulatory environment for the private sector and additionally provide access to ISRO facilities and assets to improve their capacities.
• New Innovations: Private players can bring in the innovation needed for developing space-based applications and services. Additionally, the demand for these services is soaring worldwide and in India, with satellite data, imageries and space technology being used across most sectors.
  • Moreover, ISRO would have to expand 10x the current level to meet this rising demand. According to industry estimates, India currently has 40+ start-ups working on space and satellite projects and this number is likely to increase.

What can be the Way Forward?

• There is a need for a new policy that ends ISRO’s monopoly of the space sector in India, by sharing knowledge and technology, such as manufacturing rockets and satellites, with all interested parties.
• With India having one of the best space programs in the world, the move to allow Foreign Direct Investment (FDI) in space will make India a bigger player in the global space economy.
  • FDI in space will allow foreign players with a window to venture into the India space domain, this will contribute to Indian national and foreign reserves, promote technology transfer and research innovations.
• Further, the introduction of the Indian Space Activities Bill will give greater clarity to private players on how to be an integral part of the space sector.