In a reiteration of the Indian government’s intent to boost private participation in the country’s Space sector, Jitendra Singh, Minister of State for Atomic Energy and Department of Space, has said that the Space Activities Bill is under “active consideration”. In a written response to a query in the Upper House of the Parliament, the minister informed that the government is in the process of building an ecosystem to encourage private Space players and promote indigenous production of Space technology and services. The Space Activities Bill is aimed at regulating and promoting private participation in India’s Space sector.
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The background
The Draft Space Activities Bill was first made public for comments by the Indian Space Research Organization (ISRO) in November 2017. The proposed legislation covers several aspects of India’s Space goals, including international and national obligations. In August 2020, shortly after the government announced Space reforms, ISRO said that the Bill had been finalized and was with the Prime Minister’s Office (PMO) for clearance.
As part of the larger reforms, the government announced setting up the Indian National Space Promotion and Authorization Centre (IN-Space) as an independent nodal agency under the Department of Space to regulate, promote, handhold and monitor private space activities in India. Later, access to Department of Space (DOS) facilities and expertise was extended to private entities to support their Space activities, as the government emphasized that it wanted to encourage transfer of technologies developed in Space to Indian industries for better economic growth.
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The impact
The implementation of the Space Activities Bill will give a major boost to the Indian Space industry, which for years has felt constrained due to lack of clear and favorable policies. In an in-depth analysis of the Indian Space-tech startup ecosystem last year, Geospatial World had reported how lack of funds and an open policy was forcing startups to find ways to survive, and in certain cases look to shift operations to other countries for better opportunities. According to a pwc report, the Indian Space economy is worth $7 billion, which is around 2% of the global Space economy. The report noted that India’s Space sector needs to grow at approximately 48% CAGR over the next few years to reach its target of $50 billion.
With significant market advantages like high demand for Space services in sectors like agriculture and financial services, strong domestic manufacturing base, a large pool of human resource and the ability to leverage IT skills, the time is ripe for an enabling policy that allows private companies to operate to their true potential. The Space Activities Bill can be that policy.
