Countdown Begins For Spacetech Startups As Centre Fires Up Space Policy 2023

The Centre on Thursday (April 20) formally unveiled the Indian Space Policy, 2023, weeks after it received the assent of the Union Cabinet. 

The 11-page document outlines India’s plans to spearhead the global spacetech revolution and give a major boost to the homegrown startup ecosystem. With an eye on supporting the local spacetech  sector, the policy aims to create a conducive environment to drive technology development and encourage a ‘flourishing commercial presence’ in the space sector. 

The policy has also laid down the roles and responsibilities of space organisations such as the Indian Space Research Organisation (ISRO), Indian National Space Promotion and Authorisation Centre (IN-SPACe) and NewSpace India Limited (NSIL).

While IN-SPACe has been made the nodal body for promoting and authorising space activities in the country, NSIL, has been tasked with the responsibility of commercialising space technologies and platforms.

The document aims to augment, enable and encourage space capabilities for the country’s socio-economic development, security and peaceful exploration of outer space. 

“The government will focus on… promoting space-related education and innovation, including support to space-sector startups,” notes the new space policy.

While a slew of sops has been announced under the new policy, the biggest winners appear to be startups. The document has further opened up the space sector for startups and has specified a slew of end-to-end activities that non-governmental entities (NGEs) are allowed to undertake under existing laws. 

Under the new policy, NGEs will be encouraged to offer national and international space-based communications systems, alongside allowing enterprises to establish and operate ground facilities for space objects operations such as satellite control centres. 

This will directly benefit global and local players such as Elon Musk’s Starlink, Airtel-backed OneWeb and Jio Space Tech, all of which have already applied for SatCom licences. 

On the other hand, the encouragement to operate ground facilities will enable startups such as AgniKul, Skyroot Aerospace, and Dhruva Space and spur the local ecosystem. 

Private enterprises will also be able to use local orbital resources to set up SatCom objects and remote-sensing satellite systems for communication and other purposes. 

Among other things, these NGEs will be allowed to develop, manufacture, and commercialise technologies for satellite navigation, communication space transportation and remote sensing. The policy also envisages the establishment of launch infrastructure and undertaking research in the spacetech domain. 

The spacetech players will also be free to undertake any commercial space activity approved by the Indian National Space Promotion and Authorization Center (IN-SPACe). 

The policy will employ a five-pronged strategy to spur the spacetech domain:

• By encouraging advanced R&D in the space sector 
• Providing public goods and services using space technology for national priorities
• By creating a stable and predictable regulatory framework 
• By promoting space-related education and supporting space-sector startups
• Using space as a driver for overall technology development and nurturing scientific temperament 
• By encouraging and promoting greater private sector participation in the entire value chain of the space economy

Meanwhile, there was no clarity on the aspect of foreign direct investment (FDI) in the new space policy, which is critical to attracting big-ticket foreign investments. However, senior industry executives were reportedly hopeful that the Department for Promotion of Industry & Internal Trade (DPIIT) could shortly issue FDI norms for the space and satellite services.

Govt Opens Up The Data Treasure Trove 

The policy also addressed the long pending demand of startups seeking more access to satellite and other allied data. The Centre will disseminate satellite-based remote sensing data and high-resolution earth observation data through its various arms. 

Remote sensing data with a Ground Sample Distance (GSD) of 5 metres will be available for free and on an ‘open’ basis. However, data with GSD less than 5 metres will be accessible to government entities for free while NGEs will have to pay a certain amount for such information. 

The startups will also have to seek IN-SPACe authorisation for dissemination of data with high resolution (GSD less than 30 cm), owing to national security reasons.

ISRO will also make available archived satellite data on a ‘free and open’ basis. This move will enable startups and private enterprises to access a treasure trove of data and build products on top of it for various applications. This information will also enable researchers and experts to better expand their resource base and spur innovation and R&D across the country. 

The policy also envisages participation in international efforts by providing critical remote sensing satellite data for disaster management. 

Overall, the Department of Science will be the nodal authority for the implementation of the Indian Space Policy 2023 and to create any mechanism to address any issues arising out of space activity. The department will also establish a regulatory framework for safe and sustainable space operations.

With the policy, the Centre aims to provide ‘regulatory certainty’ to the spacetech arena for enabling a thriving space ecosystem.

The framework will directly benefit homegrown spacetech startups, which have seen a resurgent growth in the past few years on account of the liberalisation of space since 2020. While the previous reforms set up many new agencies, the 2023 policy aims to delve deeper and empower them and give regulatory heft to the ecosystem. 

The growth of the space has spawned a slew of new players such as Dhruva, AgniKul, Pixxel and Skyroot. This has also attracted renewed investor interest which sent the spacetech industry soaring in 2022, despite the gloomy funding year. These players have raised millions of dollars in cumulative funding and are backed by marquee names from around the globe. 

As per Inc42, the homegrown commercial spacetech market is projected to zoom to a market size of $77 Bn by 2030.