India’s burgeoning space sector is rapidly expanding, brimming with promising potential. Since the government’s landmark decision to open the space industry to private players in 2020, the sector has experienced quite unprecedented growth, success, and organisational development.

Although there is still a long road ahead, initiatives are consistently being introduced hoping to streamline industry processes, improve accessibility, and enhance the ease of doing business in this sector that’s growing nearly at the speed of light. The latest of these initiatives is the unveiling of norms, guidelines, and procedures (NGP) by the space regulator INSPACe. These measures aim to effectively implement the Indian Space Policy 2023, inviting private players to engage in activities ranging from building and launching satellites to setting up ground stations and sharing remote sensing data.

The Indian Space Policy, introduced last year, aims to integrate the private sector into the space industry and stimulate their active participation. Although the policy has yet to be formalised into binding law, it has already spurred significant growth, with numerous startups entering the ecosystem and existing space companies securing substantial funding. Additionally, the recent introduction of the NGP follows the government’s liberalisation of the Foreign Direct Investment (FDI) regime for the sector, permitting up to 100 per cent FDI via the automatic route for specific sub-segments within the space industry. This progressive move is set to attract more foreign investment and drive further advancements in India’s space endeavors.

Here’s a brief look back at these advancements and how the Indian space industry is fairing.

INDIAN SPACE POLICY 2023: THE WATERSHED MOMENT

Released in April 2023, the Indian Space Policy marked a significant milestone, encouraging private sector involvement across the space industry. There are 189 DPIIT-recognised space technology startups in India, and the space startups have garnered investment worth $124.7 million during March-December 2023, underlines Invest India. Various Indian space startups like Dhruva, Digantara, Pixxel, Skyroot and others have attracted major investors, securing significant funding last year.

The policy also aims to foster collaboration between researchers, academicians, startups and the industry. Enhancing space capabilities, expanding commercial space activities, and creating a supportive ecosystem for all stakeholders are some major goals stated in the policy document. The policy also delineates the roles and responsibilities of the stakeholders, briefly as follows:

• Department of Space (DoS): Shall oversee the policy’s implementation, ensuring stakeholders are empowered without overlap.
• ISRO: Shall focus on R&D of new space technologies, human spaceflight capability, and sustaining human presence in space. Routine tasks will transition to industry partners.
• Indian National Space Promotion and Authorisation Centre (IN-SPACe): Shall acts as a single-window agency for authorising space activities by government and non-government entities (NGEs), coordinating with relevant government departments for communication services.
• NewSpace India Limited (NSIL): Shall continue to commercialise space technologies developed through public funding, facilitate manufacturing and procurement of space assets, and conduct commercial missions with ISRO.

S. Somanath, Chairman, ISRO and Secretary, DOS had explained to SP’s Aviation earlier that over the years, whatever has been created on the space side has been through R&D done by ISRO but in addition to that the ISRO scientists had to look into the integration of those systems as well. “While it helped in understanding how to make better systems; the scientists’ temperament needs to be invested more towards researching & developing more advanced systems. So going further, a balance is being sought. The development will continue even in terms of integration at ISRO but what is routine i.e. matured systems, will go to the industry. ISRO will continue to have similar tasks and look into bringing in new platforms, new approaches, and improvements of the existing platforms both in launch vehicles and the satellites.”

The policy encourages NGEs to develop and operate space transportation systems, build launch infrastructure, engage in space exploration, and pursue commercial asteroid resource recovery. The policy also promotes the development of space situational awareness (SSA) capabilities and underscores space’s role in India’s socio-economic development, environmental protection, peaceful exploration of outer space, public awareness, and scientific research.

While India aims to capture a significant share of the expanding trillion-dollar global space market, its policy contrasts with those of other space-faring nations, which often address security concerns more explicitly. In line with India’s space programme that has historically been civilian-focused, the Indian Space Policy signals a commitment to expanding India’s presence in space, primarily focusing on civilian initiatives and scientific exploration, with limited mention of security. The emphasis on human spaceflight and celestial resource exploration suggests potential support for long-awaited missions like Gaganyaan and Chandrayaan. However, further policy development is needed to fully realise India’s space ambition and given the dual-use of space, a defence-oriented space security policy may be forthcoming. Additionally, while the policy looks like a great first step, it has a long way to go in terms of turning this from a statement of intent to a binding regulatory framework.

According to the Indian Space Policy 2023, IN-SPACe will provide authorisations to both government bodies and NGEs for space activities, such as establishment and/or operation of space objects, launch of rockets, establishment of launchpads, planned re-entry of space objects, and so on. To further clarify on the authorisation, IN-SPACe has released the NGP document, about one year after the Policy was released.

AUTHORISATION GUIDELINES

In May 2024, IN-SPACe released ‘the NGP for implementation of Indian Space Policy 2023 in respect of Authorisation of Space Activities’ document. The norms pertain to the rules regarding authorisation for space activities in the country. The document lists out space activities that need authorisation from IN-SPACe, specifies criteria for granting such authorisations and provides necessary guidelines/pre-requisites to be fulfilled by an applicant for making an authorisation application.

According to the NGP document, any entity, whether Indian or foreign, carrying out space activities from Indian territory, its exclusive economic zone, or within its jurisdiction, needs authorisation from IN-SPACe. The guidelines detail various space-related activities that need authorisation and outline various criteria mandatory to seek appropriate approvals. The authorisation is required for a wide range of activities, including launching, operating, guiding, planning re-entry of space objects, establishing communication and remote sensing satellites, hosting payloads, operating space transportation systems, and disseminating highresolution remote sensing data pertaining to Indian territory, sale of in-orbit space objects, among others.

The applicants have to fulfill various criteria such as technical obligations and specify budgets, risk mitigation measures and aspects related to pricing. The guidelines also delineate that only Indian entities can apply for authorisation from IN-SPACe, “Only an Indian entity can apply to IN-SPACe seeking authorisation. Non-Indian entities desiring to conduct space activity in India can apply to IN-SPACe for authorisation through an Indian entity which could be its Indian subsidiary, joint venture or any other collaboration arrangement recognised by the Government of India,” noted the guidelines.

“However, the authorised representative/dealer of non-Indian entities can seek IN-SPACe authorisation for certain category of authorisations such as authorisation of non-Indian GSO and/or NGSO satellite/constellation to enable provisioning of its capacity in India for communication services, dissemination of space-based earth observation/remote sensing data, etc,” the document adds. It also outlines the process for registering space objects in India’s national registry and makes it mandatory for operators to provide detailed information about their space objects, ensuring compliance with space debris mitigation guidelines and operational safety protocols. Not just this, the norms also mandate that applicants have to inform INSPACe about any change in their ‘management and control’ or shareholding pattern within 48 hours. In the instance where the control of the authorised entity is passed to a foreign company, the company will have to apply for fresh authorisation. Additionally, the approvals are also subject to the national security regulations and the norms bar activities that pose a “threat to national defence, intelligence and security operations, foreign relations, public order, the safety of people or their property, and protection against natural disasters”.

Non-compliance with the guidelines and applicable local laws may result in revocation of the authorisation by IN-SPACe, added the document. “IN-SPACe may impose control on operations of the authorised space objects and space activities or terminate/suspend the authorisation, during national emergencies or in the interest of national security, such as situations arising out of or due to conflicts or natural disasters or times of emergency.”

The rules also envisage penalties in case an applicant “unilaterally discontinues/ terminates/ withdraws the provision of services” during the tenure of the approval depending on the nature of the loss, damage, impact on Indian users due to “discontinuation of service, expenses or any harm or prejudice to the interests of India’s national security caused by such actions of the applicant”.

The applicants will also have to take measures to reduce the generation of space debris under the applicable Space Debris Mitigation Guidelines of the Committee on the Peaceful Uses of Outer Space (UN-COPUOS) (2007). During the mission planning stages, the private party needs to determine collision risk based on the background Space Object density during the transit phase.

While certain subject matter experts do find some gaps in the guidelines, largely the NGP intends to help stakeholders to better understand the regulations and streamline the activities from building, launching and setting up ground stations.

WAY FORWARD

According to a latest report by World Economic Forum, the space economy is forecast to reach $1.8 trillion by 2035, up from $630 billion in 2023 and growing at an average of nine per cent per annum – well above the growth rate of global gross domestic product (GDP). The space industry is standing at an inflection point. The Indian space economy has seen an explosion of activity, notably a lunar programme that has made India the first country to land a spacecraft near the lunar south pole.

“India has witnessed investment of over ₹1,000 crore in Space Startups in the last nine months of the current financial year from April to December 2023. The investment in Indian Space Startups has increased to $124.7 million in 2023,” the Union Minister of State (Independent Charge) Science & Technology, Dr Jitendra Singh said. He further added, the current size of the Indian Space Economy is estimated around $8.4 billion and it is expected that with the implementation of the Indian Space Policy 2023, $44 billion Indian space economy can be achieved by the year 2033.

“The past year has been a transformative period for the Indian space sector, especially for startups. With pivotal changes like the liberalisation of FDI policies, a streamlined authorisation process, and a more structured approach to space activities, we’ve entered an era of opportunity and innovation. This evolving landscape enables startups like Digantara to accelerate their missions, contributing to India’s ascent as a global space powerhouse,” said Anirudh Sharma, Founder, and CEO, Digantara. “With that said, the encouragement for space startups will effectively translate into reality once these broad policy measures are complemented by a clear and well-defined legal and regulatory framework, which will promote a favorable environment for industry stakeholders.”

To streamline private sector participation, DoS established IN-SPACe to provide authorisations, infrastructure support, and technical assistance to NGEs, promoting a conducive environment for space activities, Dr Jitendra Singh further highlighted. NSIL, ISRO’s commercial arm, facilitates manufacturing, leasing, and trading of space assets, enhancing India’s commercial space capabilities. In line with the reforms, NSIL has also been taking demand-driven missions and working towards collaborating with Indian Industries towards productionising ISRO’s launch vehicles.

Further with increasing participation from space-tech startups and NGEs, the sector is on an upward trajectory. However, the success of these initiatives hinges on a clear legal and regulatory framework to support the industry. India aims to capture 10 per cent of the global space economy, which requires incentivising private sector growth. In addition to the policy’s direction, FDI liberalisation and the recent authorisation guidelines, the implementation needs clarity, especially regarding the roles of regulatory agencies and converting this policy into a practical regulatory framework will require significant immediate effort.

At this pivotal juncture, with a history of cost-effective innovation, a burgeoning private sector, and supportive regulations, India is poised for significant advancements in the space industry.