How Will India's New Space Policy-2023 Drive Innovation & Private Participation in the Space Sector?

The Policy permits NGEs to offer national and international space-based communication services through self-owned, procured, or leased geostationary orbit and non-geostationary satellite orbit satellite systems

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The Indian Space Policy-2023, approved by the Cabinet Committee on Security recently, marks a significant shift in India's space exploration and utilization approach. The policy emphasizes research and development of advanced technologies, encourages non-government entities (NGEs) to offer space-based communication services, promotes the manufacturing and operation of space transportation systems, and establishes clear roles for various stakeholders in the space sector.

Transitioning from Operational Space Systems to R&D

Under the new policy, the Indian Space Research Organisation (ISRO), the national space agency, will transition from manufacturing operational space systems and instead focus on research and development of new space technologies and applications. Mature systems will be transferred to industries for commercial exploitation, while ISRO will concentrate on R&D in advanced technology, proving newer systems, and realising space objects to meet national prerogatives.

Empowering Non-Government Entities (NGEs) in the Space Sector

The Indian Space Policy-2023 permits NGEs to offer national and international space-based communication services through self-owned, procured, or leased geostationary orbit (GSO) and non-geostationary satellite orbit (NGSO) satellite systems. This opens up opportunities for private entities to participate in the space sector and provide communication services using space-based technologies.

NGEs are also encouraged to establish and operate ground facilities for space object operations, such as telemetry, tracking, and command (TT&C) Earth Stations and Satellite Control Centres (SCCs). They are further encouraged to undertake end-to-end activities in the space sector, including establishing and operating space objects, ground-based assets, and related services such as communication, remote sensing, and navigation.

Additionally, the policy encourages NGEs to use Indian orbital and/or non-Indian orbital resources to establish space objects for communication services over India and outside. NGEs are also encouraged to manufacture and operate space transportation systems, including launch vehicles, and shuttles, and develop reusable, recoverable, and reconfigurable technologies and systems for space transportation.

Commercialization & Distribution of Responsibilities

To promote the commercialization of space technologies, the policy mandates NewSpace India Limited (NSIL), as the public sector undertaking under the Department of Space, to commercialize space technologies and platforms created through public expenditure. NSIL is also tasked with manufacturing, leasing, or procuring space components, technologies, platforms, and other assets from the private or public sector based on sound commercial principles. It is further responsible for servicing the space-based needs of users, including government entities and non-government entities, on commercial principles.

The Indian National Space Promotion and Authorization Centre (IN-SPACe) will function as an autonomous government organization, mandated to promote, handhold, guide, and authorize space activities in the country. The Department of Space will oversee the distribution of responsibilities outlined in the policy and ensure that different stakeholders are suitably empowered to discharge their respective functions without overlapping into others' domains.

Asteroid Resource Recovery & Commercialization by NGEs

The policy also encourages NGEs to engage in the commercial recovery of asteroids or space resources. NGEs engaged in such activities will be entitled to possess, own, transport, use, and sell any such resources obtained in accordance with applicable law, including the international obligations of India. This provision opens up opportunities for private entities to participate in the extraction and utilization of asteroid resources, which could have significant implications for space resource utilization.

Role of Indian National Space Promotion & Authorisation Centre (IN-SPACe) and NewSpace India Limited (NSIL)

The policy mandates the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to function as an autonomous government organization responsible for promoting, handholding, guiding, and authorizing space activities in the country. NewSpace India Limited (NSIL), the public sector undertaking under the Department of Space, will be responsible for commercializing space technologies and platforms created through public expenditure. NSIL will also manufacture, lease, or procure space components, technologies, platforms, and other assets from the private or public sector on sound commercial principles, and service the space-based needs of users, both government and non-government entities, on commercial principles.

Industry Response & Outlook

The new Indian Space Policy-2023 has been welcomed by industry leaders as a futuristic approach that positions India's space sector for the 21st century. The policy clarifies space activities, particularly in space communication and applications, and is expected to catalyze the development of a robust, innovative, and globally competitive space ecosystem in India.

With the emphasis on research and development, commercialization, and participation of NGEs, the Indian space sector is expected to witness significant growth and innovation. The policy sets the stage for increased private participation, technology development, and utilization of space-based resources, positioning India as a key player in the global space industry. "This policy provides the much-needed clarity on all space activities, especially regarding space communication and other Applications," Lt Gen A K Bhatt, Director General Indian Space Association, told PTI. He said the policy will be a catalyst for the development of a robust, innovative and globally competitive space ecosystem in India.