7 November 2024 : Daily Answer Writing

Q1) Private participation in propelling India’s space journey is widely acknowledged but is yet to be fully tapped. In light of the statement, analyse the hurdles faced by the private sector and also recommend measures to unlock greater private participation in the space economy.

(150 Words/10 Marks)

ANS

India’s space programme is famed for its cost effectiveness and efficiency but India’s share in the global space industry is an abysmal 2 percent. Role of private players is virtually indispensable in increasing India’s share in the global space industry through greater pool of resources, improved risk appetite, competition and incentives for technological advancements.

The potential of private sector in India’s space sector is yet to be fully untapped as it faces following hurdles:

1. Space policy: India does not have an explicit space policy to guide private sector participation. India also lacks sector-specific policies which undermine commercialization. E.g., on use of satellite communications and remote sensing data.
2. Huge economic costs: Critics argue that space sector is reduced to a rhetorical priority due to poor funding of space programmes. E.g., there has been no follow-up mission for Mars Orbitar Mission which was launched in 2014 and was termed a success.
3. Data Risk: Danger of misuse or improper utilization of important launch data, capabilities and leakage of technology to hostile elements.
4. Regulation: Regulation of private sector participation, and validation of their capabilities could be time consuming. Unfair commercial practices like lobbying and corruption to get space projects could creep in.
5. Total investment in the start-up ecosystem in India’s space sector is about 20 million USD. This is less than 0.5 per cent of global investment.
6. Revenue loss: Private players’ participation will reduce revenue of ISRO from satellite launch services.

Following measures can be taken to unlock greater private participation in the space economy:

1. Initial hand-holding by government agencies and ISRO such as use of test-beds and pooled capabilities by NGPEs (non-government private entities) will reduce cost burden.
2. Soft credit for long gestation projects, assured revenue stream along with robust insurance framework to ensure financially viable enterprise. E.g., space tourism.
3. Commercialization of space sector needs greater push. Initiatives like IN-SPACE and NSIL need integration with initiatives like Atal Incubation Centers.
4. Global collaboration, including industry-academia linkages for better human resources and global best practices in management of space enterprises from companies like SpaceX.
5. Inter-agency and inter-ministerial coordination is needed between Defense, Science and Technology, Education, MSME etc.
6. Promote absorption of critical space technologies required for human space flight such as orbital module, crew escape system, re- entry and recovery systems etc.

Commercialization of space industry will help India to get benefit of the growing global space business. Through a comprehensive space policy, we can achieve the vision of our present Prime Minister: “Space is the space to be in!”