ECOSYSTEMNational
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
IndiaWhat 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 transferntochnolSWOT- 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 theWhat 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