Syllabus
- Mains – GS 2 (Governance) and GS 3 (Science and Technology)
Context: The Union Cabinet has approved the Indian Space Policy, 2023 to enhance the role of the Department of Space, boost activities of Indian Space Research Organisation (ISRO) missions and give a larger participation of research, academia, startups and industry.
About Indian Space Policy 2023:

- It seeks to institutionalise the private sector participation in the space sector, with ISRO focusing on research and development of advanced space technologies.
- The policy will allow the private sector to take part in end-to-end space activities that include building satellites, rockets and launch vehicles, data collection and dissemination.
- The Indian Space Policy-2023, also delineated the roles and responsibilities of ISRO, space sector PSU NewSpace India Limited (NSIL) and Indian National Space Promotion and Authorization Centre (IN-SPACe).
- Strategic activities related to the space sector will be carried out by NSIL, a public sector undertaking under the Department of Space, which will work in a demand-driven mode.
- The INSPACe, created recently, will be the interface between Indian Space Research Organisation and non-governmental entities.
- The policy also spells out the framework for the private sector to use ISRO facilities for a small charge and encourages them to invest in creating new infrastructure for the sector.
- 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.
- The operational part of ISRO’s missions will be moved to the NewSpace India Limited, a public sector undertaking under the Department of Space.
Significance of the Space industry
Assessing & recording weather information:
- Satellites provide more accurate information on weather forecasts.
- It can also assess (and record) long-term trends in the climate and habitability of a region.
- For example, by monitoring the long-term impact of climate change at regional, territorial, and national scales, governments would be able to devise more pragmatic and combative plans of action for farmers and dependent industries.
Real-time tracking:
- Satellites can serve as real-time monitoring and early-warning solutions against natural disasters such as earthquakes, tsunamis, floods, wildfires, mining etc.
- Real-time tracking can also serve multiple purposes in defence.
Communication and connectivity:
- As for connectivity, satellite communication can reach more remote areas where conventional networks would require heavy complimenting infrastructure.
- Additionally, as to the reliability, the World Economic Forum(WEF) stated that satellite communication can help connect 49% of the world’s unconnected population.
- In this light, it must be noted that satellite communications, which are used to facilitate telecommunication services, are among the major categories for investment in the space technology sector.
- Other prominent categories include spacecraft and equipment manufacturing.
Benefits to other sectors:
- The space avenue is an integration of the aerospace, IT hardware and telecom sectors.
- It is thus argued that investment in this arena would foster positive carryover effects to other sectors as well.
Challenges For India’s Space Sector:
- Lower Spending: 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.
- Absence of a Clear Legislative Framework: The draft Space Activities bill was introduced way back in 2017 but hasn’t been passed yet.
- Lack of robust Dispute Settlement Mechanism: This discourages private investment in the space sector. 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.
- Brain Drain: India produces the best brains in the world but is unable to retain them.
- People emigrate from the country for better opportunities and careers that might hamper the development of the space sector.
- Managing big constellations of satellites: Although India has a good potential to launch satellites, managing a huge number of satellites in space could be a challenging task in the future.
- This should be done keeping in mind the possibilities of a future space war.
Way Forward:
Over the past two decades, private enterprises such as Virgin Galactic, SpaceX, Blue Origin and Arianespace have revolutionized the space sector by reducing costs and turnaround time in other spacefaring countries.
However, in India, private enterprises have been limited to being merely suppliers to the government’s space programme. Private sector’s involvement in the long term, as with other commercial sectors, is believed to help spur investment and expertise in the realm which is capital-intensive and demands high technology.
Source: The Hindu