Space Bill & Potential of India’s Space Sector

In Context

• A new space Bill — a legal framework for commercial use of space will soon be released.

More about the new bill

• The 2017 Bill:
  • The previous Bill (of 2017) provides for imprisonment of up to three years and fine of over Rs 1 crore if 
    • any activity is undertaken without prior licensing, 
    • false information is furnished, or 
    • it pollutes earth, airspace, outer space or celestial bodies.
  • Issues with the bill (2017):
    • This bill was criticised for being a little harsh. 
    • Also, Imprisonment was a very major disincentive for the industry, so the government sought to remove it.
• About the new bill:
  • Leniency:
    • It will do away with provisions for imprisonment.
    • The bill will be lenient when it comes to criminal charges. 
  • Insurance mechanism:
    • It will also create mechanisms for insurance damages. 
    • Significance of insurance:
      • The cost of insurance (for space activities) is very high. 
      • Today, ISRO does not pay for it because it is a government commitment, but when a private player is there, they will need insurance.

Potential of India’s space sector

• Recently, a joint report was prepared by EY and the Indian Space Association (ISpA).
  • Report highlights:
    • Indian space economy:
      • The Indian space economy is set to reach $13 billion by 2025, according to this joint report.
    • Space launch segment:
      • The report also said the space launch segment would grow fastest at a CAGR of 13% spurred by growing private participation, latest technology adoption and low cost of launch services.
    • Satellite services and application segment:
      • This segment would form the largest share of the space economy accounting for 36% of the space economy by 2025, as per the study.
      • On the country’s satellite manufacturing opportunity, it said in 2020 it was $2.1 billion and this would reach $3.2 billion by 2025.
      • Also, by 2025, satellite manufacturing would be the second fastest-growing segment in the Indian space economy. 
    • Space tech start-ups:
      • There are over 100 space tech start-ups in the country and investments in space tech start-ups increased 196% y-o-y in 2021, the survey said.
    • Space parks:
      • Space parks that are coming up across the country would give a fillip to companies operating across the space value chain, especially manufacturing, found the study.
• India’s upcoming commercial launch:
  • Marking the shift towards the private sector, India’s heaviest rocket, GSLV Mk III, will launch 36 satellites OneWeb global communication satellite constellation. 
    • This is the first commercial launch by the vehicle, so far having carried two ISRO communication satellites for two of its development flights and the Chandrayaan-2 for its first operational flight.

Significance of the Space industry

•  Assessing & recording weather information:
  • Satellites provide more accurate information on weather forecasts. 
  • It can also assess (and record) long-term trends in the climate and habitability of a region. 
    • For example, by monitoring the long-term impact of climate change at regional, territorial, and national scales, governments would be able to devise more pragmatic and combative plans of action for farmers and dependent industries. 
• Real-time tracking :
  • Satellites can serve as real-time monitoring and early-warning solutions against natural disasters such as earthquakes, tsunamis, floods, wildfires, mining etc. 
  • Real-time tracking can also serve multiple purposes in defence.
• Communication and connectivity:
  • As for connectivity, satellite communication can reach more remote areas where conventional networks would require heavy complimenting infrastructure. 
  • Additionally, as to the reliability, the World Economic Forum(WEF) stated that satellite communication can help connect 49% of the world’s unconnected population. 
  • In this light, it must be noted that satellite communications, which are used to facilitate telecommunication services, are among the major categories for investment in the space technology sector. 
  • Other prominent categories include spacecraft and equipment manufacturing.
• Benefits to other sectors:
  • The space avenue is an integration of the aerospace, IT hardware and telecom sectors. 
  • It is thus argued that investment in this arena would foster positive carryover effects to other sectors as well.

Source: TH