The 2023 Indian Space Policy is a comprehensive, dynamic framework designed to realize the government’s vision of space reforms. The policy was introduced following the 2020 reforms that opened the space sector to private players, ensuring a level playing field. The Indian Space Research Organization announced the Indian Space Policy 2023. Ideally, this policy ushers India into a new era of space exploration by opening up the space industry to private sector participation. The policy, while representing a major shift from the past, requires supportive legislation and detailed regulations for its full effect to be realized.
This was in tune with a huge shift provided that private enterprises, for the first time, were allowed to perform activities relating to launching satellites, operating ground stations, and other such activities. ISRO was conventionally the main player in the space sector, with very insignificant and negligible private participation. The new policy hopes, with the potential of the private sector, to give a fillip to the country’s space economy estimated at only two percent of the global space economy. The government wants to grow this to USD 60 billion by 2030, creating more than two lakh jobs.
The policy also aspires to improve its capabilities in space and create a dynamic commercial presence in space. It tries to be used as a catalyst for the development of space on technology, improving international relations, and developing an ecosystem for effective implementation of space applications amongst all stakeholders.
India’s journey to reform its space sector has seen several noteworthy attempts, each aiming to enhance the country’s capabilities and involvement in space activities. These efforts have included the introduction of specific policies and bills, intended to liberalize and regulate various aspects of the space industry.
The First Satellite Communication Policy was introduced in 1997, which included guidelines for Foreign Direct Investment (FDI) in the satellite industry. Despite the liberalization of FDI guidelines, the policy did not generate significant enthusiasm among potential investors. The tepid response highlighted the need for more robust and attractive measures to encourage private sector participation.
Introduced in 2001 and amended in 2011, the Remote Sensing Data Policy aimed to regulate the acquisition and dissemination of satellite-based remote sensing data. This policy was eventually replaced by the National Geospatial Policy in 2016, which further liberalized the sector, allowing for more private and commercial engagement in geospatial data services.
The Draft Space Activities Bill was introduced in 2017, initiating a consultative process to gather inputs from various stakeholders. Despite these efforts, the bill lapsed in 2019 with the dissolution of the Lok Sabha. The lapse indicated the challenges in achieving consensus and legislative approval for comprehensive space sector reforms.
There were expectations for a new space bill by 2021. However, the government seemed content with the new policy statement released by ISRO, rather than pursuing new legislative measures. This approach suggests a preference for policy-based regulation over statutory changes.
The growing need for private sector involvement in India’s space sector is driven by several factors, including economic potential, technological advancements, and national security considerations.
India currently accounts for only about 2% of the global space economy, which is valued at approximately USD 360 billion. This indicates a significant gap between India’s capabilities and the potential opportunities in the space sector, necessitating greater private-sector engagement to bridge this divide.
ISRO’s budget stands at around USD 1.6 billion, while India’s space economy is valued at USD 9.6 billion. With private sector involvement, this figure could potentially grow to USD 60 billion by 2030, creating over two lakh jobs and driving substantial economic growth.
Globally, companies like SpaceX, Blue Origin, and Virgin Galactic have revolutionized the space sector by reducing costs and turnaround times. In contrast, Indian private companies have largely remained vendors or suppliers to ISRO, highlighting the need for greater autonomy and innovation within the domestic private sector.
India’s security and defense agencies currently spend nearly a billion dollars annually on procuring earth observation data from foreign sources. This heavy reliance on external entities poses risks to national security, underscoring the importance of developing indigenous capabilities.
More than half the transponders used for broadcasting TV signals in India are hosted on foreign satellites, leading to significant financial outflows. Achieving self-reliance in space technology (Aatmanirbharta) is crucial to retaining economic value within the country.
To unlock the potential of India’s youth and entrepreneurs, it is essential to promote private sector activities in high-technology areas, including space. This can foster innovation and establish India as a key player in the global space industry.
Promoting the private sector can make India’s space industry more competitive on a global scale. Thus, enhancing cost competitiveness and creating numerous jobs in the space and related sectors.
The Indian Space Policy 2023 outlines several key provisions aimed at fostering a robust and commercially viable space sector, with a significant role for private players. The policy establishes four distinct entities to facilitate greater private sector participation: ISRO, InSPACe, NSIL, and the Department of Space.
InSPACe (Indian National Space Promotion and Authorization Centre) will serve as a single-window clearance and authorization agency for space activities. It will provide regulatory oversight, share technologies, and promote industry clusters. Thereby, ensuring a stable and predictable regulatory framework for private entities.
New Space India Limited (NSIL) will be responsible for commercializing space technologies developed through public expenditure. This includes manufacturing, leasing, and procuring space components and technologies from both the private and public sectors.
The Department of Space will offer overall policy guidelines and coordinate international cooperation. It will also establish mechanisms for dispute resolution and ensure the effective implementation of space technologies.
ISRO will transition to focus primarily on research and development, as well as long-term projects. Mature systems will be transferred to the industry for commercial use, allowing ISRO to concentrate on advancing cutting-edge technologies.
Despite its forward-looking approach, the Indian Space Policy 2023 has several gaps that need to be addressed to realize its full potential.
While the policy sets an ambitious role for IN-SPACe, it lacks a defined timeframe for implementing the necessary steps. This absence of a timeline could delay the realization of the policy’s objectives.
There is no indicative timeline for ISRO’s transition away from its current practices. A clear schedule is needed to ensure a smooth transition and effective implementation of the new policy framework.
The policy framework requires clear rules and regulations concerning FDI, licensing, government procurement, liability, and dispute settlement. Without these, the policy’s effectiveness could be compromised.
IN-SPACe currently lacks legislative authority, which is necessary for it to function effectively as a regulatory body. Granting it statutory status would enhance its capabilities and mandate.
The position of IN-SPACe under the Department of Space remains ambiguous. Clarifying this relationship is crucial for the smooth functioning and authority of IN-SPACe.
Thus, the Indian Space Policy 2023 has become a major leap toward an energetic space economy by associating with private players. But this dream essentially requires strong statutory backing, timelines, and statutory authority to IN-SPACe. As a future civil servant, it is very important to learn these policy dynamics to steer the space sector of India into global competitiveness and trigger innovation-driven growth.
| Indian Space Policy 2023 UPSC Notes |
| 1. The Indian Space Policy, 2023, introduces reforms to facilitate greater private sector participation in the Indian space sector effectively. 2. This is a paradigm shift in allowing private agencies to participate in launching satellites and other space-related activities. 3. It aims to grow the space economy of India to USD 60 billion by 2030, thus generating employment of over 200,000 jobs. 4. The policy intends for this to be enabled by IN-SPACe, NSIL, the Department of Space, and ISRO to promote private participation. 5. The policy calls for supportive legislation and regulations for the policy to be effectively implemented. 6. It aspires to an increase in the space capabilities of India along with building a vibrant commercial market in the world system. |
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