Context: Central Government approved the Indian Space Policy 2023 that seeks to institutionalise the private sector participation in the space sector, with Indian Space Research Organisation (ISRO) focusing on research and development of advanced space technologies.
- Indian Space Policy-2023 delineated the roles and responsibilities of ISRO, space sector PSU NewSpace India Limited (NSIL) and Indian National Space Promotion and Authorization Center (IN-SPACe).
- ISRO will not do any operational and production work for the space sector and focus its energies on developing new technologies, new systems and research and development.
- NSIL, a public sector undertaking under the Department of Space, will work in a demand-driven mode and carry out the strategic activities related to the space sector.
- IN-SPACe will be the interface between Indian Space Research Organisation and non-governmental entities.
- The focus of the policy would be to increase the participation of the private players in the space sector.
- It will allow the private sector to take part in end-to-end space activities that include building satellites, rockets, and launch vehicles and data collection and dissemination.
- It creates the framework for the private sector to use ISRO facilities for a small charge and encourage them to invest in creating new infrastructure for the sector.
- Entry of the private sector in the space sector would enable the ISRO to channelise its focus on research and development of advanced space technologies.
- It offers much-required clarity in space reforms and augment private industry participation to drive the space economy opportunity for the country.
- It will enable larger participation between the research academia, startups, and industry.
- Increase investments from private companies in the space sector, with players such as OneWeb and more planning to offer commercial services in near future.
Indian Space Sector
- In June 2020, the government opened the space sector to allow participation of private firms in the entire gamut of space activities.
- As part of these reforms, the government set up New Space India Limited (NSIL), the country’s first public sector undertaking in the space sector, and Indian National Space Promotion and Authorization Centre (IN-SPACe), as the promoter and regulator of space activities in India by non-government and private entities.
- As a result, within 3 years, the number of startups has reached about 150 in ISRO.
- Presently, Foreign Direct Investment (FDI) in space sector is allowed up to 100% in Satellites-Establishment and Operations through Government route only.