Context: 

The Indian Space Research Organisation (ISRO) released the Indian Space Policy 2023 that had been in the works for some years. The document has been received positively by industry.

Need of the Policy:

• Earlier Ineffective Policy:The first satellite communication policy was introduced in 1997, with guidelines for foreign direct investment (FDI) in the satellite industry that were further liberalised but never generated much enthusiasm. 
• Reliance on Foreign Satellites: More than half the transponders beaming TV signals into Indian homes are hosted on foreign satellites, resulting in an annual outflow of over half a billion dollars.
• Expenditure on Earth Observation Data: Indian users including the security and defence agencies spend nearly a billion dollars annually to procure earth observation data and imagery from foreign sources. 
• Future Sectoral Growth and Employment: It is estimated that with an enabling environment, the Indian space industry could grow to $60 billion by 2030, directly creating more than two lakh jobs.

How is the policy different from the earlier policies?

• Vision: To enable, encourage and develop a flourishing commercial presence in space.
  This suggests an acceptance that the private sector is a critical stakeholder in the entire value chain of the space economy

• Role of private sector: It defines its role in India’s socio­ economic development and security, protection of environment and lives, pursuing peaceful exploration of outer space, stimulation of public awareness and scientific quest.
• Focus of the policy: There is the only reference to ‘security’ in the document, making it clear that the focus is on civilian and peaceful applications.
• The policy lays out a strategy and then spells out the roles of the Department of Space, ISRO, the Indian National Space Promotion and Authorisation Centre (IN­SPACe) set up in 2020, and the NewSpace India Limited (NSIL).
• Role of ISRO: 

1. 1. ISRO will transition out of the existing practice of being present in the manufacturing of operational space systems.
   2. ISRO shall focus on R&D in advanced technology, providing newer systems and realisation of space objects for meeting national prerogatives.
   3. It will share technologies, products, processes and best practices with NGEs (non government entities) and/or Government companies and use manpower, to concentrate on cutting edge research and development and long term projects such as Chandrayaan and Gaganyaan.

• Role of NSIL: It will become the interface for interacting with the industry, undertake commercial negotiations and provide hand­holding support to ensure smooth and efficient transfer of technologies.

• Role of the private sector: 

1. 1. The NGEs  are allowed to undertake end to end activities in the space sector through establishment and operation of space objects, ground based assets and related services, such as communication, remote sensing, navigation, etc.
   2. Satellites could be self owned, procured or leased; communication services could be over India or outside; and remote sensing data could be disseminated in India or abroad. 
   3. NGEs can design and operate launch vehicles for space transportation and establish their own infrastructure.

• Role of IN­SPACe: 

1. 1. It is expected to act as the single window agency for authorising space activities by government entities and NGEs, in keeping with safety, security, international obligations and overall national interests. 
   2. It is expected to create a stable and predictable regulatory framework that will ensure a level playing field for the NGEs. 
   3. It will act as a promoter by setting up industry clusters and as the regulator, issue guidelines on liability issues.

Gaps in the policy: 

• The policy sets out an ambitious role for IN­SPACe but provides no time frame for the necessary steps ahead. 
• Neither is there an indicative timeline for ISRO’s transitioning out of its current practices nor is there a schedule for IN­SPACe to create the regulatory framework.

Measures Needed:

• 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.
• A specific time frame is needed to provide the necessary legal framework to translate this vision into reality, to successfully launch India into the Second Space Age.

News Source: The Hindu