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ECOSYSTEM National Objective India should become a global leader in the growing space industry by creating a competitive private industry ecosystem with minimal investment of public money India needs to Build a NewSpace ecosystem in India to nat just support domestic needs but also to become an export hub for development of Upstream and downstream products and services for the global space industry. The Government of India (Gol) can create opportunities for larger private sector participation by creating a robust regulatory framework, smart funding, driving technology development, removing entry barriers and fostering collaboration domestically and intemationally. Space Activities, ecosystem and New Space in India What are “Space activities”? Afaulty definition: “space activity” means the launch ofany space object, use of space object, ‘operation, guidance and entry of ‘space object into and from outer ‘space andall functions for performing the said activities jincluding the procurement of the DownstrE Space activites can be classified ‘as Upstream and Downstream Upstream is focused on sending objects (space assets) into space and space exploration like development and manufacture of launch vehicles, satelites and launch Downstream is focused on ultlising space assets in a range of different applications like TV DTH services, ground equipment, Earth Source: Tertory space industy 2020, Nora Tory Goverment of asa ‘Siaaisinse ev aulnaon Loddon aeaca nai Arpaia! as observation, weather monitoring and, satellite communications, “ Current Indian Traditional Space Ecosystem India currently hasa centralized Upstream Downstream ecosystem with the Department of ‘Space(D0S)and indian Space Research Organization 'SRO) at the center of most activities ‘The Space Ecosystem in India is mostly contralled by the Department of Space/ISRO through @ combination of- Gow/isRo/D0S + Direet engagement and control: 9. Launch servioes and vehicle {Quasi Government manufacturing by ISRO + Quasi government involvement: 9. DoS mandating that DTH TV service providers use only ISRO satellites (or foreign satellites recommended by ISRO) Sectors completely left to the private sector tend to be related to components and subsystems manufacturing) but even hia the Figure showing the space ecosystem of India and evel of government ‘ government has an outsized involvement influence as ISRO is the largest (and sometime sole) customer. Moving from Traditional Space to New Space in India Traditional Spaceis where ‘India has been- government funded, driven and centralized NewSpace is an approach that focuses on lowering the barriers to entry to space industry) ISRO built a solid foundation {for India to become a global space super power- but it did so alone. Now India needs a private space ecosystem - New Space- to propel her forther. ‘The capacity of ISRO to deliver all of India's future space needs- launch more satelites, create more downstream applications, invest in RAD in both upstream and ‘downstream is limited, A good ‘example is how 75% of India’s TV DTH requirements are being met through foreign satelites because of ISRO’ limited capacity to launch satelites in time”, In the Traditional Space era, the space program. right from launch to Use of space objects- was centrally funded, directed and regulated. The role of the private sector was limited to ust being suppliers of parts and components to a single government customer- ISRO, NewSpace is an approach where the development of the space sector can only happen through increased private participation ‘As many international space-faring nations have now realized, the future ‘oft space race lias in private participation. For example, an advanced space-fating nation ke the US has recognized way back in 1984 the need to have progressive legislation on commercial space launches®. Increased participation of the private sector can lead to lower costs, more Innovation, mare applications of space technology and efficient ‘operations. For this to happen, NewSpace needs an environment where there is. transparent and legal Clarity, a regime that fosters technology development, smart funding by the government, reduced bartiers to entry of private players and collaboration, SWOT- Traditional Space in India® Proveu Tecluologs Transferred based ‘on Jong-ferm Partnership intrasteweture 180 bes continuously ‘sorkedl sth maa Strength Weakness G “ ‘eanpeliive iligieens msnfactring mst schiexe solmnesin Opportunity Threat ‘#Source: ISRO website nology transferntochnol SWOT- New Space in India® ‘Targets commercial space via B2B or BAC models ‘Row Sve entreyreicurs use unlyue sine nodes tl Bab aypmvaehes 1k for propulson tocholeges ani! BaCapproaches= eg. Hnekeleees thr ‘edueation “Talent and foundation Inused ou ISRO expertise ulsendor eeassstem es Spice entry recurs ‘ean take alvantage of te Sendor ecossster ity Strength ‘enuloves fr Used eel expertise {Chanec to ereae ontsonreing, Frayed models for product development produetion Due tls nique cst Irate, ia ns in fippovtmty to hecome 3 Opportunity eee once. P., ating te suecess of the ‘or in the ate 199 el 20008 Weakness Threat Lach of uiuestie private ecosystett forthe adusiry Thee is wk domest retina or 3 Tait busy Vos tex chinese Indust hasta fellow exlstig lana acl comypete with ‘ell rence Interlional ayers Lack of coneretepoliey Alsace Actisiies i firs ten, sll exis amework lies space exploraio uals ats wo Weta yale atonal space ron tt mites! oy the What should the government do? (And not do) Regulatory Framework What the govemment should do India does not havea clear regulatory framework or deating with Space Activities ‘One important need i to avoid conflict of interest by separating regulatory, licensing and administrative functions of DoS ‘India also needs to have a comprehensive Space Law that can create opportunities lke space mining andr iabites Separate the regulatory fonctions of DoS and ISRO” Currently, there isno clear demarcation between the regulatory functions of the various government agencies related to Space, eg. the Chairman of ISRO also the DoS Secretary and the Chairman of the Space Commission. The Gol mast early separate the regulatory, licensing and administrative functions Cf the Dos (and ISRO), and vest the functions with an independent body responsible for commercial space activities aka the National Commercial Space Agency. This wl ensure there is no conflict of interest between public and private players. + DoS should focus on Policy ‘making functions and high-level management of ISRO + ISRO should focus on research & innovation and launch services + The independent body (National Commercial Space Agency) should be the organ for Licensing and administration National Space Law that creates opportunities and limits liabilities on private players ‘There s a need for a comprehensive and transparent legal framework for Space Activities: Opportunities - and Liabilities are very different for upstream and downstream activities ‘The proposed Space law should address specific activities inthe value chain and actively try to create opportunities (eg. Law allowing Space mining similar to Luxembourg) and limit Hailes (eg, Mandiating a ceiling for insurance cover required to be taken by commercial space launch companies"), There are some ancillary issues liability for space debris, national responsibiities for monitoring space activities arising out ofits territory or its mandate, cross waivers in case of failures during launch of payloads into space that would also need regulatory clarity. Regulatory Framework What the government should do India needs to have anedal agency independent of 00S for creating a NewSpace Ecosystem ‘National Security Concerns cannot be wished away- necessary legal safeguards mustbe implemented and thearned forcesneed tobea participant in the decision making process Nodal agency for commercial activities (independent of DoS) ‘The Gol must create a National Commerdal Space Agency (mentioned earlier) to foster conditions for creation ofa commercial space sector in India) In order to avoid confit of intorest ssich an agency must not be under the DoS and ideally be a unit under the Department of Industrial Policy and Promotion (DIPP) under the Ministy of Commerce and Indust. Such a templates already present in the US — with the Departmant of (Commerce creating an Ofice of Space Commercialzation, legislatively established by the US Congress as a principal unt for its space commerce policy activities, with a mission to foster the conditions for the economic growth and technological advancement of the US commercial space industry. Have Legal Safeguards for National Security Issues The Gol must create necessary legal safeguards for issues related to National Security. While a blanket national security clause has been included in the draft Space Activites Bil 2017, a better approach would be to assess each activity from a national security perspective and devise laws/rules to govern the same, In addition, the DoS must include the armed forces as a stakeholder in Policy making and include them in decision making process. Progressive Technology Policies What the goverment should do Allow Private IP creation, with norms forlicensing to government ‘Many technology areas of strategic national interest have high investments/gestation periods. The government mustinvolve tselfin these areas through ISRO. Allow private IP creation The current draft Space Activites Bill 2017 mandates that all IP created with tespect to Space Activities is the property of the Gol. Such a policy ‘would kill innovation as inventors wil ‘ot get to enjoy fruits of their labour" Itwould be better for the government fo have a compulsory fcance on any new technology {'?) provided the license fee!royalty is priced at fair market value. Invest in High investment/ Long Gestation Technologies There are many critical technological and innovation areas where the prohibitive cost of investment or long ‘gestation periods- Super Heavy Launch Vehicles, On-Orbit Servicing ‘Assembly and Manufacturing (OSAM), more fuel efficiont propulsion technologies, space debris management etc. For India to be a space superpower and for the domestic space ‘ecosystem be ready for technologies and requirements of the future, its

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