The global space industry has the potential to become worth $1 trillion by 2040. India is vying for a significant portion of that
When we think of space exploration, the Indian Space Research Organisation (ISRO) is often the first body that comes to mind. Headquartered in Bengaluru, ISRO is the primary space exploration agency of India. In 1969, ISRO was established from the INCOSPAR program and later became part of the DOS (Department of Space) and the Space Commission, which was created in 1972, and since then there’s been no looking back.
From launching Aryabhata, India’s first satellite in 1975 to the successful Mars Orbiter Mission, named Mangalyaan in 2013, which made India the first country to reach Mars on its first attempt, with the cost of only $76 million, lesser than the budget of movies like Gravity ($100 Mn) and Interstellar ($176 Mn).
The Indian Government is eyeing its interest in expanding the boundaries of the Indian space arena and has proposed that private companies be allowed to take a more active role in the space industry.
By switching from a “Supply-Based Model” to a “Demand-Based Model”, and employing New Space India Limited (NSIL) as an intermediary for customer requirements and commitments, ISRO will assist DOS. Additionally, NSIL will acquire control of DOS’ operational launch vehicles and market launches, satellites, and other services.
Joining the link above, Indian Prime Minister Narendra Modi recently inaugurated the Indian Space Promotion and Authorisation Centre (IN-SPACe), a government agency aimed at promoting private investment and innovation in the space sector.
IN-SPACe will support the private sector and help it participate in building satellites, launching vehicles, carrying out launches, and providing space-based services. The Indian government’s new space policy is assumed to come into effect by early 2023 (the draft is already released), and it is expected to lead to the development of a vibrant and innovative space ecosystem in the country. The new space policy will outline how non-government entities can work in the space sector and provide support for the private sector through the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The policy will focus on the use of low earth orbit (LEO) satellites, which are cheaper than traditional satellites, and will encourage the private sector to manufacture satellites for various applications such as agriculture, healthcare, urban development, disaster management, etc. The global space economy is estimated to be worth $423 billion dollars, with India constituting 2-3 per cent of that market. The government hopes to tap into the full potential of the sector and expects to have its own SpaceX-like start-ups within the next two years.
The policy has already attracted the attention of several start-ups, with their number in the space sector increasing from just four in 2018 to over 250 in 2022. There are currently over 100 space start-ups in the country that have collectively raised over $245.35 million in funding.
One startup that has already made a significant impact is Skyroot Aerospace. On November 18, 2022, the Indian Space Research Organisation launched India’s first privately built rocket, called Vikram-S, from the Sriharikota launchpad. The rocket was developed by Skyroot Aerospace (which became the first Indian private company to reach outer space when its rocket reached an apogee of 89.5 km).
Another start-up to watch is Agnikul, which is developing a small satellite launch vehicle and has already secured funding of $96 million. The company plans to launch its first rocket by 2024 and has set a goal of launching 100 small satellites per year. Bellatrix, a Bengaluru-based aerospace start-up is working on developing low-cost propulsion systems for small satellites. The company has already raised $2 million in seed funding and plans to launch its first rocket by 2023. Satsure is another Indian start-up that is focused on developing small satellite platforms and has raised $1.5 million in seed funding.
On November 26th, the PSLV-C54 mission carried nano satellites built by Indian start-ups Pixxel and Dhruva Space into space. The mission was a major milestone for both companies and has raised hopes that they will be able to make significant contributions to the development of the space industry in India.
The global space industry is currently valued at more than $400 billion and has the potential to become a $1 trillion industry by 2040. India may have a robust space infrastructure, including multiple launch sites, a range of advanced rockets and satellites, and a skilled and experienced workforce by 2040. It’s like India is all set to reclaim its lost glory, which smiles in the adulation of Pushpak-Vimanas (mentioned in Ramayana), dating 7000 years ago. The current space policy shall be a catalyst on this path to glory.
(The author is an academic associate at the Indian School of Business)
