Space Sector in India- Significance and Challenges- Explained Pointwise
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The celebration of the first ever National Space Day, on August 23, 2024, has put the spotlight on the Space Sector in India. National Space Day in India commemorates the successful landing of Chandrayaan-3 on the Moon. The Government of India has launched a month-long campaign to showcase the achievements of the space Sector in India and inspire the Indian youth.

In this article, we will look into the recent developments in the Indian Space Sector, post the success of the Chandrayaan-3 mission. We will look at the significance of the Space Sector in India and the pertinent challenges plaguing it.

Space Sector In India
Source- The Hindu
Table of Content
What have been the recent developments in Space Sector in India post the Successful Chandrayaan-3 mission?
What is the significance of Space sector in India?
What are the challenges in further development of space infrastructure in India?
What Steps have been taken by the Government to address these challenges?
What should be the Way forward?

What have been the recent developments in Space Sector in India post the Successful Chandrayaan-3 mission?

New Space Launches

Aditya-L1 MissionAditya-L1 spacecraft has been launched to study solar radiation from the Earth-Sun Lagrange point (L1), aboard the Polar Satellite Launch Vehicle (PSLV). It reached its orbit around L1 by January 6, 2024, and completed its first orbit on July 2, 2024. In May 2024, it tracked a solar storm in collaboration with ground observatories and lunar spacecraft.
Gaganyaan TV-D1 Test FlightThe test successfully separated the crew module from the Test Vehicle (TV), ensuring it safely descended and was recovered by the Indian Navy vessel INS Shakti. This test is a key part of ISRO’s human spaceflight program.
XPoSat LaunchIt studies the polarization of radiation from celestial objects and follows NASA’s IPEX mission.
RLV-TD TestsISRO tested its Reusable Launch Vehicle (RLV), Pushpak, with landing experiments that mimicked conditions from space. These successful tests provided key data and set the stage for the upcoming Orbital Return Flight Experiment.
SSLV DevelopmentISRO successfully completed the final test flight of the Small Satellite Launch Vehicle (SSLV). This milestone confirms the SSLV’s readiness for commercial use. The payloads included earth observation tools and an ultraviolet dosimeter for the Gaganyaan mission.

Regulatory and Institutional Developments

NewSpace India Ltd. (NSIL)NSIL now manages commercial activities like Indian Remote Sensing satellite data. On May 1, 2024, NSIL signed a launch deal with SpaceX for the GSAT-20/GSAT-N2 satellite. It has also sought qualifications for LVM-3 production and signed a launch agreement with an Australian company for the SSLV.
Private Sector ContributionsPrivate space companies are progressing with their missions- Agnikul Cosmos launched its SoRTeD-01 vehicle, Skyroot Aerospace is developing the Vikram 1 rocket, and Dhruva Space and Bellatrix Aerospace contributed to the PSLV-C58 mission.
Regulatory DevelopmentsIndia’s space regulator, IN-SPACe, has updated its policies and issued new licences, including the first satellite broadband license to Eutelsat OneWeb and the first ground station license to Dhruva Space.
The government has amended its foreign direct investment (FDI) policy to allow 100% FDI in most space sectors. However, there are some limits on satellite manufacturing (74%) and launch infrastructure (49%).

Future Roadmap and Initiatives

Gaganyaan ProgramISRO is progressing with its Gaganyaan human spaceflight program. By 2035, ISRO aims to establish India’s own space station, the ‘Bharatiya Antariksh Station’ (BAS).
Next-Generation Launch VehicleISRO is working on a Next Generation Launch Vehicle (NGLV). It will be a three-stage rocket using semi-cryogenic, liquid, and cryogenic engines. The NGLV will replace the GSLV. ISRO is also upgrading the LVM-3 rocket with a new semi-cryogenic engine.

What is the significance of Space sector in India?

1. Boost to ‘Space Industrialisation’- Currently, India manages to occupy only 2%, or US$ 7 billion, of the global space economy. The development of space sector will promote space Industrialisation in India, provide a boost to space-tech ecosystem and help India’s space economy to reach $100 billion by 2040.

2. Low Cost Missions- The Indian space sector has the potential of launching space vehicles at a much lower cost. This will help in getting many foreign contracts. For ex- Mars Orbiter Mission was 10 times cheaper than western missions.

3. Presence of Budding Entrepreneurs- According to a global report published in June 2021, India has 368 private space firms, placing it 5th in the world in size after the US, the United Kingdom, Canada, and Germany. With these many firms, India is leading China (288), France (269), and Spain (206) in the private space industry.

4. Enhancement of India’s role and position in the Artemis accord- India is now a member of the Artemis Accords. With the further growth and development of space sector, India has an opportunity to lead the other Artemis countries alongside the U.S.

Artemis Accord- It is the U.S.-led multilateral effort to place humans on the moon by 2025 and thereafter to expand human space exploration to the earth’s wider neighbourhood in the solar system.

5. Expansion of cooperation in outer space- While geo-political rivalry is a reality, India’s space sector provides India an opportunity to limit competition and expand cooperation in outer space. However, it also allows India to gain military advantage in space over their geopolitical rivals on Earth.

What are the challenges in further development of space infrastructure in India?

1. Budgetary Challenges- Space sector in India faces budget constraints despite its successes in launching missions. There has been an 8% decline in budget allocations to ISRO in 2023-2024 with respect to 2022-2023. The funds allocated to the space sector are very less in comparison to other countries. The US spent 10 times and China 6 times more than India in the space sector in 2019-20.

2. Manpower Challenges- ISRO, the foundational pillar of Indian space sector, faces manpower challenge due to the problem of Brain Drain and fewer students pursuing advanced spaced space studies.

3. Absence of a Clear Legislative Framework- The draft Space Activities bill, which was introduced way back in 2017 but has not yet been passed. This has hindered the further growth and development of the space sector in India.

4. Lack of robust Dispute Settlement Mechanism- This discourages private investment in the space sector in India. The void was seen in Antrix-Devas cancelled satellite deal. The Government of India owes nearly $1.2 billion to Devas Multimedia as per an order of a tribunal of the International Chamber of Commerce.

5. Technological Challenges- ISRO faces technological upgradation challenges like powerful launch vehicles with higher payload capacity. For ex- While Chandrayaan-3 took nearly six weeks to get to the Moon, the failed Russian mission Luna-25 took just one week to touch down.

6. Government funding driven sector- Some critics have argued that such massive spending by the government alone in the space sector curtails Indian government’s spending capability in social sectors like poverty alleviation, education, and health which must be the priority for developing country like India.

What Steps have been taken by the Government to address these challenges?

Indian Space Policy, 2023Indian Space Policy 2023 is a landmark policy for the development for India’s space sector. It offers an opportunity to build upon past achievements and harness the potential of the evolving space sector.
IN-SPACeIt aims to provide a level-playing field for private companies to use the Indian space architecture. IN-SPACe will act as a channel between ISRO and any private players that want to participate in space activity, thereby culling lengthy bureaucratic procedures.
FDI PolicyThe government has amended its foreign direct investment (FDI) policy to allow 100% FDI in most space sectors. However, there are some limits on satellite manufacturing (74%) and launch infrastructure (49%).
New Space India Limited (NSIL)It is a Central Public Sector Enterprise under the Department of Space that was established in 2019. It has been mandated to transfer the technologies emanating out of the Indian space programme and enable Indian industry to scale up high-technology manufacturing base.

What should be the Way forward?

1. Push for greater privatization- India must frame its space policy regulations to allow for greater private sector investment in the field of space technology and infrastructure. India’s space programmes should be driven by commerce.

2. Passage of space Activities Bill- The passage of the Space Activities Bill should also be done in order to give private players greater clarity and protection. This should involve proper consultation and discussions with the concerned stakeholders.

4. Setting up Space Dispute Tribunal- The plan to set up an independent tribunal to adjudicate disputes among private space entities should be implemented promptly.

4. Enhanced International Collaboration- India must do more collaboration and research with pioneer countries like the US & Russia, who have already ramped up their space infrastructure.

Indian Space sector possesses huge untapped potential which can be realized with adequate policy measures by the government. This would boost the confidence of the private sector and deliver optimum results, thereby helping the country acquire the top spot in the global space industry.

Read More- The Hindu
UPSC Syllabus- GS Paper-3- Achievements of Indians in Science & Technology (Space)
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