{"id":49169,"date":"2019-07-10T15:55:17","date_gmt":"2019-07-10T10:25:17","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=49169"},"modified":"2019-07-10T15:55:17","modified_gmt":"2019-07-10T10:25:17","slug":"answered-india-has-contributed-tremendously-in-space-exploration-do-you-think-india-should-expand-private-players-role-in-its-space-industry-critically-analyse","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/answered-india-has-contributed-tremendously-in-space-exploration-do-you-think-india-should-expand-private-players-role-in-its-space-industry-critically-analyse\/","title":{"rendered":"[Answered] India has contributed tremendously in space exploration. Do you think India should expand private players role in its space industry? Critically analyse."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction. <\/strong>Write a contextual introduction.
Body. <\/strong>Need of privatisation of space. Benefits, and issues.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

India is among the global leaders in space exploration. ISRO has spearheaded India\u2019s success in space. From a modest beginning in the 1960s, India\u2019s space programme has grown steadily, achieving significant milestones. These include various satellite launch, space-launch vehicles, and a range of associated capabilities. But private sector has not contribute much to it.<\/p>\n\n\n\n

Why private sector should be involved in space industry?<\/strong><\/h3>\n\n\n\n
  1. Increasing Demand-<\/strong> <\/strong>Indian\nSpace Research Organisation (ISRO)\u2019s annual budget has crossed \u20b910,000 crore\n($1.45 billion) and is growing steadily. However, demand for space-based services <\/strong>in India is far greater than what ISRO can provide.\nWith limited number of staff, its difficult to meet the ever increasing demand\nfrom various stakeholders. Therefore, private sector investment is critical,\nfor which a suitable policy environment needs to be created. <\/li>
  2. Overall growth of space sector-<\/strong> <\/strong>Private\nsector participation is needed to ensure overall growth of the space sector. ISRO\nhas a strong association with the industry, particularly with Public Sector\nUndertakings (PSUs) like Hindustan Aeronautics Limited and large private sector\nentities like Larsen and Toubro. But most of the private sector players are Tier-2\/Tier-3<\/strong> vendors<\/strong>, providing\ncomponents and services. The Assembly, Integration and Testing (AIT) role is\nrestricted to ISRO. Role of private industries should be increased.<\/li>
  3. Very less global contribution-<\/strong> <\/strong>The\nglobal space industry is estimated to be $350 billion and is likely to exceed\n$550 billion by 2025. Despite ISRO\u2019s capabilities, India\u2019s share is estimated\nat $7 billion (just\n2%<\/strong> of the global market).\nPrivate sector role is must to increase India\u2019s contributions globally.<\/li>
  4. International trends and experience<\/strong>– <\/strong>Elon\nMusk\u2019s \u201cSpaceX\u201d and its high profile projects have highlighted the increasing\nsignificance of the private players in the space sector. In India, despite the\nvarious strategic, security and regulatory constrains, a limited private\necosystem has evolved around the ISRO. Private are merely contracting with\nnational space agencies to build satellites and subsystems. Contrarily, the\ncurrent trend is developing entire vertically integrated operations without\nlicensing or purchase agreements with national agencies.<\/li><\/ol>\n\n\n\n

    Various Benefits of private\nsector\u2019s participation in space industry <\/strong><\/h3>\n\n\n\n
    1. Greater pool of resources-<\/strong> <\/strong>Public\nresources- land, labour, capital are limited. Private sector participation will\nopen new pool of resources and talent. It will bring more funding, and experience\ninto space exploration activities.<\/strong><\/li>
    2. Human Capital-<\/strong> <\/strong>Restricting\nspace activities to ISRO, limits proper utilisation of talent all over the\ncountry. With demographic dividend, private sector participation can exploit\nthe talent across the nation contributing a lot to space explorations in India.<\/strong><\/li>
    3. More time for ISRO-<\/strong> <\/strong>Today every\nspace mission is done by ISRO, whether its communication satellite or any\nweather monitoring satellite. With increased role of private player, ISRO can\nconcentrate more on its pathbreaking innovations like Reusable PSLVs, Cryogenic\nrockets, mars inhabitation. <\/strong><\/li>
    4. Technological advancement<\/strong>– Commercialisation will also develop better\ntechnologies which is important. It will allow integration of many other\ntechnologies like artificial intelligence into space exploration activities.\nWith experience from space activities, private sector can increase role of\ntechnology in other areas.<\/strong><\/li>
    5. Risk Sharing-<\/strong> <\/strong>Every\nlaunch consists Risk. Privatising helps in sharing the risk of cost factor. Failure\ncosts will be distributed. Also with increased private participation, failures\nwill reduce due to increased available human capital and mind. Joint venture\nbrings the knowledge from various stakeholders minimises failures and increases\nproductivity.<\/strong><\/li>
    6. Commercial demand-<\/strong> <\/strong>There is\nneed to enhance internet connectivity for the masses, which is another demand\npull factor for increased commercial interest in space. Asteroid mining is also\nanother potential area that looks promising, with scope for monetisation and\ndisrupting commodity markets. <\/strong><\/li><\/ol>\n\n\n\n

      Issues and\nConcerns of private participation in space industry<\/strong><\/h3>\n\n\n\n
      1. Data Risk–<\/em><\/strong> <\/em><\/strong>Though\nspace it gives an opportunity to entrepreneurs but raw data of ISRO in the\nhands of public is sensitive and consists of danger of misuse or improper utilisation\nof data.<\/em><\/li>
      2. Regulation-<\/strong> <\/strong>Though its\na profitable investment, regulation of private sector participation is not\neasy. The time taken for regulatory clearances and unstable political\ninstitutions can cause delays and hurdle in decision making of investors.<\/em><\/li>
      3. Revenue loss<\/strong>– <\/strong>ISRO will loose a fair amount of money it is earning\nthrough its space activities. This will reduce government revenue. <\/li>
      4. Unfair commercial practices<\/strong>– Allowing private sector may lead to lobbying\nand unfair means to get space projects or launch of any satellite for their own\nprofit. It may also lead to leakage of sensitive information by private players\nto other countries and companies to make profit.<\/li><\/ol>\n\n\n\n

        India should create an independent body that can create a level playing field for government and private space enterprises. A new Space law for India should be framed which should aim at facilitating growing India\u2019s share of global space economy to 10% within a decade which requires a new kind of partnership between ISRO, the established private sector and the New Space entrepreneurs. <\/p>\n","protected":false},"excerpt":{"rendered":"

        Demand of the question Introduction. Write a contextual introduction. Body. Need of privatisation of space. Benefits, and issues. Conclusion. Way forward. India is among the global leaders in space exploration. ISRO has spearheaded India\u2019s success in space. From a modest beginning in the 1960s, India\u2019s space programme has grown steadily, achieving significant milestones. These include… Continue reading [Answered] India has contributed tremendously in space exploration. Do you think India should expand private players role in its space industry? Critically analyse.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-49169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2019\/07\/Mains-Marathon-%40.png?fit=700%2C373&ssl=1","views":{"total":0,"cached_at":"","cached_date":1703087015},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/49169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=49169"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/49169\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=49169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=49169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=49169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}