India’s first-ever Space Policy document

An encouraging & necessary step in the right direction, but needs to be translated into a regulatory framework soon for effective utility.

BLURBS

ISRO, as the National Space Agency, will focus primarily on R&D of new space technologies and applications, and for expanding the human understanding of outer space.

The policy also stated that ISRO shall also demonstrate human spaceflight capability and develop a long-term road map for sustained human presence in space and undertake missions on in-situ resource utilisation and other aspects of extra-terrestrial habitability.”

IN-SPACe shall act as the single window agency for the authorisation of space activities by Government entities as well as NGEs.

So while the policy looks like a great first step, it has a long way to go in terms of turning this from a statement of intent to a binding regulatory framework.

The policy defines the role of space in India’s “socio-economic development and security, protection of the environment and lives, pursuing peaceful exploration of outer space, stimulation of public awareness and the scientific quest”.

The policy directs them to develop space situational awareness (SSA) capabilities and provide services for safe operations and maintenance in space as well as engage in the commercial recovery of an asteroid resource or a space resource.

QUOTES:

“The clarity of various roles in the Indian Space Policy 2023 marks a yellow-brick road for Indian private companies who not only wish to commercialise their products and develop new technologies but to also understand the kind of support that will be provided to them,” said Kranthi Chand, Head – Strategy & Special Projects, Dhruva Space.

S. Somanath, Chairman, ISRO and Secretary, DOS explained, “The development will continue even in terms of integration at ISRO but what is routine i.e. matured systems, will go to the industry. So ISRO will continue to have similar tasks and look into bringing in new platforms, new approaches, and improvements of the existing platforms both in launch vehicles and the satellites.”

Lt. Gen. AK Bhatt (Retd.), Director General of, the Indian Space Association (iSpA) commented that the policy will help to create opportunities for the private sector to engage in all aspects of the space industry, from setting up and operating space objects and ground-based assets to offering related services like communication, remote sensing, and navigation, thereby enabling them to provide end-to-end solutions in the space sector.

“The increased private industry participation will eventually result in an increased contribution of India in the global space economy.” Dr. Jitendra Singh, Union Minister of Science & Technology, and Space

“While it is good to see some clarity emerge as to how the various roles for all the stakeholders are envisaged, it is still not sufficient in terms of clarifying what is the character of each regulatory agency.” Ashok GV, Partner.

“Considering that space-based intelligence, reconnaissance, surveillance, communication, positioning, and navigation capabilities are increasingly seen as mission critical by the defense services, India conducted a successful A-SAT (anti-satellite) direct ascent test in March 2019, and, in the same year, set up the Defence Space Agency and the Defence Space Research Organisation, it is reasonable to infer that a defense-oriented space security policy document will be a separate document,” stated Former Indian Diplomat, Ambassador Rakesh Sood

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On April 20, 2023, India’s first space policy was released after being approved by the cabinet on April 6, 2023. The policy document envisions “augmenting space capabilities, flourishing commercial presence in space, and creating an ecosystem for effective implementation of space applications among all stakeholders”.

During the precursor event to the Space Economy Leaders Meeting under G20, Dr. Jitendra Singh, Union Minister of Science & Technology, and Space said, “The reforms announced earlier had aimed to make private industries a co-traveler in India’s Space journey by allowing them to undertake independent end to end space activities. The increased private industry participation will eventually result in the increased contribution of India to the global space economy. And now, in order to give a further boost to private investments, the Union Cabinet has approved India’s space policy which envisages and encourages private participation in all areas of space activities.”

Roles Outlined

As the Indian space industry gears up for its next phase, the policy outlines a path for the industry going forward, defining the roles of various stakeholders including the Department of Space (DoS), Indian Space Research Organisation (ISRO), NewSpace India Limited (NSIL), and Indian National Space Promotion and Authorisation Centre (IN-SPACe).

DOS shall be responsible for “overseeing the distribution of responsibilities outlined in this policy and ensure that the different stakeholders are suitably empowered to discharge their respective functions, without overlapping into others’ domain.”

For a long time, space activities in India have emerged from ISRO, making it the sole bearer of the Indian space program. Going forward, “ISRO, as the National Space Agency, will focus primarily on research and development (R&D) of new space technologies and applications, and for expanding the human understanding of outer space.”

S. Somanath, Chairman, ISRO and Secretary, DOS explained to SPs Aviation that over the years, whatever has been created on the space side has been through R&D done by ISRO but in addition to that the ISRO scientists were forced to look into the integration of those systems as well. However, it helped in understanding how to make better systems. But the scientists’ temperament needs to be invested more towards researching & developing more advanced systems. So going further, a balance is being sought. “The development will continue even in terms of integration at ISRO but what is routine i.e. matured systems, will go to the industry. So ISRO will continue to have similar tasks and look into bringing in new platforms, new approaches, and improvements of the existing platforms both in launch vehicles and the satellites.”

The policy also stated that ISRO shall also demonstrate human spaceflight capability and develop a long term road-map for sustained human presence in space and undertake missions on in-situ resource utilisation and other aspects of extra-terrestrial habitability.

One highly discussed aspect of the policy has been the authorisation of IN-SPACe. According to the policy, IN-SPACe shall act as the single window agency for the authorisation of space activities by Government entities as well as NGEs (Non-Government Entities), subject to relevant Government directives. On the release of the policy, IN-SPACe Chairperson Pawan Goenka stated, “Amongst other things, it opens the door for the private sector to participate comprehensively in the space sector and mandates IN-SPACe and ISRO to facilitate the private sector.”

The policy further adds that IN-SPACe shall authorise the use of Space Objects for communication/broadcast services to or from Indian territory in coordination with other concerned departments of the Government of India including the Ministry of Information and Broadcasting (MoIB), Department of Telecommunications (DoT), and Ministry of Communications.

“It is anticipated that promotion through IN-SPACe will be effective in taking startups and private enterprises to important international forums and making them a part of vital international collaborations, trade bridges, and joint R&D programs. We hope that IN-SPACe’s role of enabling, authorising, and promoting private Indian Space activities will also hasten bilateral collaborations, globally,” added Chand.

While NSIL, “as the Public Sector Undertaking under DOS, shall be responsible for commercialising space technologies and platforms created through public expenditure. It shall also facilitate the manufacture, lease, or procure space components, technologies, platforms, and other assets from the private or public sector, on sound commercial principles,” states the policy.

In its capacity, NSIL has been consistently doing dedicated commercial missions with ISRO, by having foreign customers as well as enabling Indian space industry startups to launch through ISRO rockets. The recent one on its list was the successful launch of PSLV-C55/TeLEOS-2 on April 22, 2023, which launched two Singapore satellites and payloads from Indian startups, Bellatrix and Dhruva.

“By defining the roles and responsibilities of the relevant authorities, the Space Policy attempts to avoid any foreseeable regulatory overlap, which may otherwise hinder the progress of the Indian space ecosystem,” said Anirudh Sharma, Founder, and CEO, Digantara.

Lt. Gen. AK Bhatt (Retd.), Director General, the Indian Space Association (iSpA) commented that the policy will help to create opportunities for the private sector to engage in all aspects of the space industry, from setting up and operating space objects and ground-based assets to offering related services like communication, remote sensing, and navigation, thereby enabling them to provide end-to-end solutions in the space sector.

Nurturing Space Ecosystem

The policy emphasised that the Government seeks to pursue a holistic approach by encouraging and promoting greater private sector participation in the entire value chain of the Space Economy. The Government introduced private reforms for the space sector in 2020, opening the doors for enhanced participation of NGEs in carrying out end-to-end activities in the space domain with an aim to provide them with a level playing field. Over 200 and counting startups have surfaced ever since in the industry.

“As per the policy, we are pleased to see that DoS, ISRO, NSIL and IN-SPACe would be supporting innovation and working closely with private Indian space entities, but would also step in to address risks when necessary. Additionally, the policy is also very clear about what the private sector can do should international entities wish to come to India and collaborate with Indian private players, not just for commercialisation but also for developing next-generation technologies,” Chand added.

The policy encourages NGEs to manufacture and operate space transportation systems, establish launch infrastructure and participate in space exploration and in having a human presence in outer space. It directs them to develop space situational awareness (SSA) capabilities and provide services for safe operations and maintenance in space as well as engage in the commercial recovery of an asteroid resource or a space resource.

“With the Indian Space Policy 2023, the Indian Government has taken a step in the right direction for creating a conducive environment for private space actors. At the outset, it signifies the growing interest of the Indian Government towards private sector participation in the space industry as well as developing indigenous capabilities in critical domains, such as SSA,” said Sharma.

Need for Regulatory Translation

“With that said, the encouragement for space start-ups will effectively translate into reality once these broad policy measures are complemented by a clear and well-defined legal and regulatory framework, which will promote a favorable environment for industry stakeholders,” Sharma continued. “India has set a lofty goal of capturing 10 per cent of the global space economy in the coming years. To achieve this, India needs a well-defined framework that incentivises private companies’ growth with support from the Government. If India taps into this potential effectively, it can realise its global space ambitions at an unprecedented scale. Private players can leverage ISRO’s extensive expertise and infrastructure to contribute to the Indian space ecosystem’s growth.”

Gen. Bhatt also stated that while the policy will be a catalyst for the development of a robust innovative and globally competitive space ecosystem in India, we are also hopeful that the new FDI policy on space will be promulgated soon.

So while the policy looks like a great first step, it has a long way to go in terms of “turning this from a statement of intent to a binding regulatory framework,” pointed out Ashok GV, Partner, Factum Law. “While it is good to see some clarity emerge as to how the various roles for all the stakeholders are envisaged, it is still not sufficient in terms of clarifying what is the character of each regulatory agency.” For instance, the jurisdiction of DOT and the jurisdiction of MoIB are not clear. Where one begins, one ends, where should I file my first application, none of that is clear. So those are some things I presume will be clarified in the days to come, he added. “One thing the industry was constantly looking for was segregation of the Indian space program’s operational role, not their regulatory role. That also does not seem to be forthcoming in the new policy because DOS continues to have the overarching say. So DOS’ opinion would still prevail and they can even redistribute the responsibilities among all the stakeholders under the policy, that sort of lack of autonomy for IN-SPACe contradicts the language of the policy as an autonomous regulator. Translating the policy document into a regulatory framework in the near future is a process that will probably require a lot of effort on the part of each stakeholder.”

Former Indian Diplomat, Ambassador Rakesh Sood also underlined the concern. “The policy framework envisaged will need clear rules and regulations pertaining to FDI and licensing, government procurement to sustain the new space start-ups, liability in case of violations and an appellate framework for dispute settlement. The Space Policy 2023 is a forward-looking document reflecting good intentions and a vision. But what is urgently needed is a time frame to provide the necessary legal framework to translate this vision into reality, to successfully launch India into the Second Space Age.”

The draft of a new foreign direct investment (FDI) policy for space is said to be ready and is expected in the next couple of months.

Sans Security

India’s space program has been a civilian one primarily. The dual use of space in defence and civil domains as well as the militarisation of it have been gaining a lot of traction in India and globally while space emerges as “the fourth frontier of war”. However, the current policy does not specify any mention of that yet.

“This is the only reference to ‘security’ in the document, making it clear that the focus is on civilian and peaceful applications. Considering that space-based intelligence, reconnaissance, surveillance, communication, positioning, and navigation capabilities are increasingly seen as mission-critical by the defence services, India conducted a successful A-SAT (anti-satellite) direct ascent test in March 2019, and, in the same year, set up the Defence Space Agency and the Defence Space Research Organisation, it is reasonable to infer that a defence-oriented space security policy document will be a separate document,” stated Sood.

International Stance

From an international standpoint, the Space Policy is well-aligned with the views expressed by the Indian delegation at the (recently concluded) 62nd session of the United Nations Committee on the Peaceful Uses of Outer Space (UN COPUOS), including the need to devise legal mechanisms relating to Space Traffic Management, Sharma added.

According to recent reports, the space industry is estimated to be over 440 billion USD. The space market is expected to grow to a trillion-dollar market within the next 20 years and India aims to capture a significant share of the same.

To appropriately take advantage of the economic value of near-Earth space “unilateral national policies cannot replace international agreements. The preference to develop domestic policies over international agreements reflects both the emerging value of commercial space and the stagnation of international space governance, the international think tank Wilson Centre underlined in one of its reports.

Most other space-faring nations including the USA, UK, Russia, Japan, China, and others already have their policies in place for some time while the governance and regulation of space internationally still floats largely in the sea of ambiguity. DOS has been identified to coordinate international cooperation in the area of global space governance and programs in consultation with the Ministry of External Affairs.

However, the Indian Space Policy definitely comes in as an encouragement towards space activities and portrays the Government’s keen interest in expanding India’s reach and presence in outer space. It encouragingly mentions working towards having humans in space and exploring other celestial resources. This also hints that as ISRO’s focus streamlines towards R&D, long-due missions like Gaganyaan and Chandrayaan may get a needed boost.

So the policy can be called a needed step in the right direction but only a step on whose base an entire ladder is to be built and the next layers of brick must come sooner than the policy came for India to shine on its glorious space path.