Expert Speak Space Tracker
Published on May 23, 2020
This is a real opportunity for establishing a taut and symbiotic relationship between the three services and space unicorns, fostering an ecosystem that spurs innovation to meet India’s defence needs. Startups need stable clients to succeed and the Indian armed services can be a critical source of customer-based stability.
Atma Nirbhar: Indian Space Start-ups and the Armed Services The recent announcement by Finance Minister (FM) Nirmala Sitharaman’ in the fourth part of the 20 Lakh crore Atma Nirbhar Bharat Special Economic Stimulus Package (ANBSESP) for greater participation of the private enterprise in the space sector is very promising, but deserves scrutiny. The announcement has implications for both the start-up sector and the Indian military, with the FM specifically alluding to the start-up segment of the Indian space sector as a beneficiary for the use of the Indian Space Research Organisation (ISRO)’ facilities and infrastructure. Secondly, this latest shift by the Modi-led government holds importance for the Indian armed forces as well. The growth of Indian space start-ups in the last few years has fuelled entrepreneurial activity and innovation in satellites and Space Launch Vehicles (SLVs). The government-run Indian Space Research Organisation (ISRO) has been at the forefront of developing launch vehicles, and satellites and the launch of spacecraft. It has built and maintains vast and diverse set of space facilities and is building more infrastructure. The FM’s latest announcement of a shift in government policy encouraging the private sector to perform the role vested historically and traditionally in ISRO, was at one level inevitable and not exclusively spurred by the current pandemic. After all, the Modi government was pursuing extensive consultations on the passage of the Space Activities Bill since at least 2017, but the Bill is yet to become law. This is largely due to the complexities involving space science and technology, which is a strategic sector, any ensuing legislation will need to be clear and enforceable in a manner that encourages private initiative, investment, management and technological input.

The Modi government was pursuing extensive consultations on the passage of the Space Activities Bill since at least 2017, but the Bill is yet to become law.

Further, ISRO has implemented a technology transfer initiative since the early 1980s that transfers technologies to various private and state-owned enterprises bringing benefits to Indian industry. This initiative has transferred know how to various S&MEs and through licencing agreements with the aim of commercialising technologies with spin-offs. Over the years, the range of technologies developed in-house that have been released by the ISRO include polymers, computerised systems, electronics, electro-optical systems and ground-based technology for satellite systems. In one of its latest transfers, the space agency has transferred Lithium ion-cells to a handful of state and private enterprises. Although start-ups do not figure in the list of beneficiaries. That apart large industrial groups such as Godrej Space, Larsen and Toubro (L&T), Tata, Walchandnagar Industries and others have been integral to the supply chain and sub-contractual work for the Indian space programme. What implications might the emergence space start-ups in the private sector as a contributor to the Research and Development (R&D) in space technologies have for the armed services. Beyond the large industrial technological houses listed above, which have generally been a part of the supply-chain for the Indian space programme, space start-ups in India, which emerged only a few years ago and established presence in various urban centres like Hyderabad, Bengaluru and Chennai have been pursuing a distinct path in the development of space technology. Space start-ups are already in the process of contributing to India’s first human spaceflight mission – the Gaganyaan -1. There are some variables that differentiate space unicorns from the large supply chain industries. Space start-ups have more drive and ambition than the bigger enterprises that tend to do overwhelmingly sub-contractual work on behalf of ISRO. Endowed with young technically qualified personnel and possessing initiatives of their own which are distinct, niche and disruptive, the start-up segment in the space sector can be at the cutting edge. Several start-ups have some working capital. Latest data available between 2016 and 2019 does indicate indicates that venture capital has enabled space unicorns which are involved in developing palm-sized satellites to Small Satellite Launch Vehicles (SSLVs) are gaining a toehold. ISRO for its part has already been working with start-ups to commercialise critical technologies and the ANBSEP will serve to accelerate that process. To be sure not all the Indian start-ups will succeed and some in high probability will go bust.

What implications might the emergence space start-ups in the private sector as a contributor to the Research and Development (R&D) in space technologies for the armed services

Consequently, the armed services cannot be far from exploiting the emerging possibilities generated by the (ANBSESP), which is geared to ensuring greater self-reliance by freeing up the space sector and the pandemic has catalysed this shift. All three services must exploit this change and the government must permit an extensive and deep outreach by the services to see how some of the innovations accruing from the start-up segment can partially generate benefits to the military’s Intelligence, Surveillance and Reconnaissance (ISR) requirements. Small satellite technology by space start-ups is one core area which the armed services must exploit the government’ move. The tri-service Defence Space Research Organisation (DSRO) set-up by the Modi government to identify and develop space warfare capabilities should, unless it is already happening, become the mechanism or the nodal agency for outreach to the start-up sector. This is a real opportunity for establishing a taut and symbiotic relationship the three services and space unicorns and fostering an eco-system that spurs innovation to meet India’s defence needs. Start-ups need stable clients to succeed and the Indian armed services can be a critical source of customer-based stability. Relying exclusively on ISRO to develop and service the space-borne military needs of the three services would be ill-advised. Space unicorns can be very dynamic, advancing partially the requirements of the Indian military. Indeed, the ANSESP is intended to at a minimum limit the government’ monopoly over the space sector and the armed forces through the DSRO should see it as an opportunity. Although, the ANSESP by liberating the space sector from over-regulation or governmental control is a positive step bringing gains to the space start-up segment, more clarity will be necessary particularly in the form of a comprehensive Space Activities Law spelling out the provisions ranging from licensing and Intellectual Property Rights (IPR) covering start-ups and customers such as the Indian armed forces.
The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.

Author

Kartik Bommakanti

Kartik Bommakanti

Kartik Bommakanti is a Senior Fellow with the Strategic Studies Programme. Kartik specialises in space military issues and his research is primarily centred on the ...

Read More +