Abstract: Space reforms unfurled by India in 2020 have catapulted the indigenous space sector to higher trajectories. India is now witnessing the emergence of indigenous innovation in defence as well as space sectors. The 100- plus start-ups, around 400 micro, small and medium enterprises (MSMEs), large corporates, and defence public sector undertakings (DPSUs) working in space sector activities are all contributing to a dynamic space eco-system. The service requirements of the country’s defence sector have traditionally been met by Defence Research and Development Organisation (DRDO) and Indian Space Research Organisation (ISRO). Space reforms have tried to bridge the gap resulting from rising demands, from within the defence sector and allied areas by infusing civil-military fusion through policy reforms. Notwithstanding the policy initiatives, there remain issues specific to the defence space domain, which necessitate a re-examination of the post reform framework to better accommodate defence space aspirations and requirements. This article attempts to highlight where Indian defence space sector has gainfully benefitted and what needs to be done more to obviate bottleneck. Towards this approach of leading space faring nations has been examined and solutions proposed for deriving maximum benefit through the Indian Space reforms.
Space 2.0 for India
The Indian space programme is one of the world’s fastest growing. India is moving towards increasing its capacity and capabilities of using space technology products and services not only for societal applications but also to support commercial space activities and pursue diplomatic and security objectives. Presently, India has 55 active space assets which include 18 communication satellites,1 nine navigation satellites (eight of first generation and one/ NVS-01 of second generation),2 five scientific satellites, three Meteorological satellites, and 20 Earth Observation (EO) satellites.3 To rockets that deploy satellites in space like, the Polar Satellite Launch Vehicle (PSLV) and Geosynchronous Satellite Launch Vehicle (GSLV), India has recently added Launch Vehicle Mark-3 (LVM3) and Small Satellite Launch Vehicle (SSLV) to its fleet.
The colloquial, but generally recognised term Space 2.0 refers to the current era where a new space age marrying engineering with business to develop products and services that are globally scalable and sees commerce as a new driver in space. The global space economy is currently valued at about USD 360 billion. Being one among a few spacefaring nations, and accounting for only about 2% of space economy,4 Indian space programme has witnessed continuity in increase of its capital expenditure. This is resonated by increased budget allocations to DoS/ ISRO from 2018-2022 5 as well as by a 3.4% increase in capital outlays of Department of Space (DoS), for the FY 2024 vis-a `vis FY 2023.6
Necessity for Ushering Space Reforms
Although last two decades have witnessed a space revolution by foreign private sector (e.g., SpaceX, Blue Origin, Virgin Galactic, and Arianespace), in India, players within private space industry were limited to being vendors or suppliers to Government of India’s (GoI) space programme. Therefore, to provide scope for Non-Governmental Entities (NGEs) to participate in Indian space programme and play vital roles to boost India’s market share in global space economy, GoI ushered in space reforms from 2020, with an aim to capture approximately 9 % of global market share by 2030.7 These reforms enabled the private sector to participate and engage with ISRO beyond subcontracting, and provide another line to the existing public enterprises active in space. These reforms are intended to encourage supply and demand for space driven applications and investment through specific technology transfers such as PSLV and SSLVs, while creating new corridors and agencies that provide legal frameworks for participation of firms and startups.8 With the promulgation of Indian Space Policy 2023, liberalisation of Foreign Direct Investment (FDI) for space sector (21 February 2024) and publication of Norms, Guidelines and Procedures (NGPs) (in May 2024) by the Indian National Space Promotion and Authorisation Centre (IN-SPACe) for authorisation of space activities, GoI has facilitated the private sector to supplement, complement, partner and even compete with government agencies such as IN-SPACe, ISRO and New Space India Limited (NSIL).9 From regulation to promotion and governance, the policy has taken cognisance of the need to define the scope, functions, and outlook of these agencies, thereby clearly demarcating the R&D roles of the hitherto ISRO and its monopoly in space.
Dawn of the Indian Defence Space Sector
Consequent to the 1999, Indo-Pak Kargil conflict, the 2001 Kargil Review Committee (KRC) Report acknowledged that India, being a non-aligned nation, faced a dauting task compared to Pakistan towards accessing dual use technology.10 In 2003, the then IAF Chief, Air Marshal S Krishnaswamy had already articulated the clamour for an ‘Aerospace Command’. He said, “Any country on the fringe of space technology like India has to work towards such a command, as advanced countries are already moving towards laser weapon platforms in space and killer satellites.”11 In 2007, China launched a KT-2 missile on its own FY-1C satellite thus demonstrating its ASAT capability. Two weeks after the test, the then IAF Chief Air Marshal S. P. Tyagi publicly raised the issue, stating “As the reach of the Indian Air Force is expanding it has become extremely important that we exploit space and for it you need space assets. We are an aerospace power having trans-oceanic reach. We have started training a core group of people for the 'Aerospace Command'.”12 Subsequently, in June 2008, the then Defence Minister Shri A. K. Antony announced setting up of an Integrated Space Cell (ISC) under the aegis of HQ Integrated Defence Staff (HQ IDS). The minister added “Although we want to utilise space for peaceful purposes and remain committed to our policy of non-weaponisation of space, offensive counter space systems like anti-satellite weaponry, new classes of heavy-lift and small boosters and an improved array of Military Space Systems have emerged in our neighbourhood.”13 The statement was GoI’s acknowledgment of the need for an integrating window between military, DoS and ISRO.14 Whilst findings of the Naresh Chandra Task Force set up in 2011, to review the recommendations of the KRC are not de-classified, open source indicates that one of the recommendations was the creation of an Aerospace Command.15 Twenty years after Op-Vijay16/ Op-Safed Sagar,17 numerous deliberations, and global militarisation and weaponisation of space, especially through demonstrated ASAT capabilities, the Defence Space Agency (DSA) was raised in June 2019.18
Major Takeaways from Indian Space Reforms
Indian space reforms underpinned on Space 2.0/ New Space, provide much needed civil-military fusion which will help the private industry to align their capacity and technology endeavours to match that of the military. With the progressive graduation of Indian private space industry ecosystem from assembly, integration and testing to design, development and turnkey solutions, the military stands to gain through in-house availability of emerging and disruptive technologies, especially in the field of dual use technologies pertaining to ISR, Position Navigation and Timing (PNT) and SATCOM. In a fledging Indian space ecosystem comprising of start-ups in a mix of both upstream and downstream sectors such as Team Indus, Earth2Orbit, Astrome Technologies, Bellatrix Aerospace, and SatSure, or the success stories being scripted by Digantra, Sky Root, Pixel in a relatively short span of time are worth noting. The organisation chart of DoS is shown in Fig 1. With these reforms, IN-SPACe and NSIL function with ISRO under the Secretary DoS.

Fig 1: Organisation Chart of Department of Space
NSIL is the commercial arm of Indian Space Research Organisation (ISRO) with the primary responsibility of enabling Indian industries to take up high technology space related activities. It is also responsible for promotion and commercial exploitation of products and services emanating from the Indian space programme. The major business areas of NSIL include, production of PSLV and SSLV through industry, production and marketing of space-based services, including launch services and space-based applications like transponder leasing, remote sensing and mission support services; building of satellites (both Communication and Earth Observation) as per user requirements; transfer of technology developed by ISRO centres/ units and constituent institutions of DoS; and, marketing spin off technologies and products/ services emanating out of ISRO activities and consultancy services.19
IN-SPACe acts as an interface between ISRO and Non-Governmental Entities (NGEs) and assesses how to utilise India's space resources better and increase space-based activities. Created in June 2020 and operationalised in February 2022, it is responsible to promote, authorise and regulate activities in space for ISRO and other private enterprises and start-ups. IN-SPACe has a 12-member board, with representation from academia, bureaucracy, R& D, and corporations but none from defence. As a promoter, IN-SPACe identifies technology transfers from ISRO to private industry, manufacturing of space products in India by Indian companies etc, and as an authoriser, it enables NGEs to undertake satellite launches, establish launch pads, and provide space-based services.20
Mission Defence Space Programme
The Mission Defence Space Programme aimed to catapult technology enablers in Space Sector for the defence services. Prime Minister Narendar Modi resonated this during the annual defence expo in 2022 by clearly stating that “Space technology is an example of what security will mean for any strong nation in the future. Various challenges in this area have been reviewed and identified by the three services. We have to work fast to solve them.”21 A total of 75 defence space challenges were identified. Over the years contracts/ MoUs have gradually been concluded with Indian Private entities to deliver tangibles.
Global Lessons in Defence Space Integration: France and the US
France
The French Space Command, Commandement de l’Espace (CDE) was created in September 2019 within the French Air Force which was transformed into the French Air and Space Force.22 One of the CDE’s first investments was to augment its Space Situational Awareness capabilities through procurement of services from Safran Data Systems. France is particularly fortunate to have major global space firms (Thales-Alenia, Airbus and Ariane Group) all located in Toulouse, France. The CDE has incubated a Defence Space Innovation Laboratory (LISA),23 also in Toulouse. It focuses on CDE’s operational requirements and scouts the industry for existing solutions, encourages innovation and adapts existing industrial solutions to meet current operational requirements. To fulfil its tasks, LISA interacts with the French Space Agency, Centre National d'Etudes Spatiales (CNES), National Aerospace Laboratory (ONERA), Universities, and space industries/ startups. LISA gets its funds from the Defence Innovation Agency (AID) to initiate technological demonstration capability activities with industry/ academia and has access to the French Procurement Agency, DGA for furthering projects with large financial outlays.24 To ensure competition a rating system is adopted, whereby industry meeting scheduled targets/ deliverables are incentivized in subsequent projects.
USA
In 2024 the US published the USSF Commercial Space Strategy (CSS) and the DoD Commercial Space Integration Strategy (CSIS), both being complementary. The USSF CSS presented four Lines of Efforts (LOEs) (collaborative transparency, operational and technical integration, risk management and securing the future) to augment integration of private space enterprises with the USSF and also support the industrial base.25 As a course to steer, the USSF has ranked eight mission areas (A mission higher in list implies extant commercial solutions exist and can be enhanced)26 based on market maturity and ability of the technology to be ploughed back. These are listed:
-
Satellite Communication (SATCOM).
-
Space Domain Awareness (SDA)
-
Space Access, Mobility and Logistics (SAML)
-
Tactical Surveillance, Reconnaissance and Tracking (TacSRT)
-
Space based Environmental Monitoring (SBEM)
-
Cyberspace Operations
-
Command and Control Operations
-
Position Navigation and Timing (PNT)
Recommendations for Strengthening India’s Defence Space Strategy
Despite reforms refining industrial infusion into the space sector, there are a few areas which, if addressed, could significantly improve the commercial space sector’s infusion into the Indian defence space sector.
-
Inclusion of Military in Commercial Approval Boards. Presently, the approved organisational structure of IN-SPACe does not have any military representation in any of the authorisation boards and directorates. Considering that the DSA is the ‘Single Point of Contact’ for all military matters pertaining to space, towards effectively reaping fruits of civil-military space eco-system and for analysing implications of approved authorisations on defence space, it is necessary that HQIDS/ DSA or DMA/ CDS be adequately represented in IN-SPACe boards and directorates. This may necessitate consideration towards modification of the approved organisational hierarchy of IN-SPACe through an appropriate Cabinet Note.
-
Inclusion of Military Representation in Space Commission. The Space Commission of India is presently the highest policy making body for matters related to space exploration and is headed by Chairman ISRO. It has no defence representation. Post - reforms, IN-SPACe established itself as a single window nodal agency, with its own cadre and functions as an autonomous body, under Secretary DoS. In other words, IN-SPACe is its own head. Considering that IN-SPACe has experts from all relevant fields--barring defence--and has roles/ responsibilities akin to the Space Commission, it is considered prudent to demarcate the overlap between these two organisations. Presently HQ IDS/ DSA or DMA/ CDS are not part of the Space Commission, despite being key stake holders. It could be argued that such a proposal could be counterbalanced by stating that the National Security Adviser (NSA) is already part of the Space-Commission and would provide the requisite strategic oversight on defence space policy issues. However, this apex-level membership of such a senior functionary would not be what HQIDS/ DMA could bring to deliberations which would be discussed by the Commission. Further, the DSA has been raised to look at niche technical, operational, and strategic factors associated with defence space issues. Therefore, along with diversification of roles and responsibilities between the Space Commission and IN-SPACe, inclusion of HQ IDS/ DSA or DMA/ CDS as permanent members in Space Commission is considered critical.
-
Special Financial Powers for Technological Demonstration. All defence space acquisitions are governed by rules of Defence Acquisition Procedure (DAP 2020). Whilst Indian space reforms through liberalized FDI have benefited the civil space sector, the defence space domain continues to grapple with cumbersome DAP procedures, which despite persistent revisions are mired with long gestation. Towards gainfully exploiting the niche domain of space, (which is dovetailed with state-of-the-art high-end technology with high opportunity costs in missing the first mover advantage), it is imperative that the HQ IDS/ DSA be provided with special financial powers/ Technology Demonstration Fund on lines similar to that of DRDO to avoid pitfalls of procurement associated with the long and cumbersome defence acquisition procedures. DG DSA must have a high level of autonomy, complemented with enhanced budget provisions, which can be exercised towards achieving defence space solutions through civil industry / government PSUs at a faster pace than is currently feasible.
-
Development of Centre of Excellence. The foundation of any new technology is as strong as the fundamentals on which it was conceptualized. These fundamentals are imparted by our academic and professional educational institutions. It is necessary that we explore outer space to symbiotically benefit civil and military applications by excelling in our academic and research base. The military must take the lead here and develop with the industry a Centre of Excellence which could be the cornerstone of future technology absorption in the Indian Defence Space sector.
-
Formulating a Comprehensive Defence Space Strategy. To date India has not published its Defence Space Strategy/ Doctrine. The absence of a guiding document would inhibit the private sector from gauging the defence space ‘Course to Steer’, thereby relying only on civil sector goals and hardly any interaction with defence services. A defence space strategy document would allow the private industry to participate with armed forces space aspirations and undertake investments appropriately.
-
Manufacturing Capacity Assessment. To be intrinsically self-reliant in military space spectrum, includes having sufficient space assets with an appropriate mix of payloads (Intelligence Surveillance and Reconnaissance, Position Navigation and Timing, Space Situational Awareness, Counter Measures and Satellite communication) to ensure optimum performance and reliability. Added, there is need for improved launch capabilities including launch on demand and quick response mechanisms. India needs to expand its modest fleet of nine military satellites.27 Whilst we have the capability, we lack the capacity to intrinsically meet the military’s appetite, resulting in import of services (eg satellite images for want of better accuracy and faster revisit time). It is therefore recommended, that with diversification of responsibilities in the wake of space reforms, the military undertakes a joint capacity assessment with industry under the aegis of either MoD/ DDP. The recommendation is also premised on the fact that despite 100% FDI being permitted in research and development along with manufacturing in space sector, it is very unlikely that key niche space technologies e.g. mirror polishing, sensor manufacturing etc., would be transferred as technologies under G2G/ MoUs. Hence the military would have a realistic assessment as to what it needs to continue to import, for how long and for what it can bank on the DPSUs.
Closing Recommendations
Prima-facie, Indian space reforms appear to address civilian commercialisation of outer space. However, these must not be viewed in isolation from their military utilization outcomes. Space capacities of nations are utilised not only for civilian and commercial purposes but also for security and defence related issues as space technologies, infrastructure and services can serve both civilian and national security objectives. Dual-use policies will result in optimal utilisation of such high value assets and will also provide added advantages of redundancy and resilience. After all the mechanisms to ensure security of all Indian space assets (civil/ military) would remain essentially with the military, and inclusion of military representation from military membership within the Space Commission, IN-SPACe, and important decision-making bodies (boards/ directorates) spectrum/ frequency allocation, orbital slot requirements etc. are valuable for all stakeholders. Additionally, through space reforms 2.0, streamlining of defence C2 chain with DG DSA reporting to Space Commission through a Space Command Authority, could also aid in obviating duplication of efforts between military and other users, ensuring commonalty and interoperability to the extent feasible, and swift and expeditious approvals, for collectively realising the desired capabilities.
Endnotes
-
Department of Space/ ISRO, “Communication Satellites,” https://www.isro.gov.in/ CommunicatioSatellitenNew.html, accessed 17 July 2024.
-
Anonna Dutt, “ISRO’s new NavIC Satellite Launches Successfully: Why a Regional Navigation System Matters to India”, Indian Express, May 20, 2023, https://indianexpress.com/ article/explained/explained-sci-tech/new-navic-satellite-launching-today-why-a-regional-navigation-system-matters-to-india-8633947/.
-
Department of Space, “Earth Observation Satellites,” ISRO, https://www.isro.gov.in/ EarthObservationSatellites.html.
-
“Preparing to Scale New Height,” Price Water Cooper Report, January (2020), https://www.pwc.in/assets/pdfs/researchinsights/2020/preparing-to-scale-new-heights.pdf, accessed 12 June 2024.
-
Shuvrajit Das Biswas, “Budget 2023,” Deccan Herald, January 18, 2023, https://muckrack.com/riddhi-kaushik/articles.
-
“Economic Survey of India Report 2023-2024,” https://www.indiabudget.gov.in/ economicsurvey/, accessed 26 July 2024.
-
Government of India, Department of Space/ ISRO, “Unlocking the Space Sector-On the Path to Atmanirbhar Bharat,” September 2019, https://transformingindia.myg ov.in/wp-content/uploads/ 2021/09/Space-reform-booklet-compressed-1.pdf, accessed 12 June 2024.
-
Rohan Atrawalkar, “A Larger Role for Private Sector in New Space Policy, is a Step in the Right Direction,” Indian Express, April 28, 2023, https://indianexpress.com/article/opinion/ columns /in dian-space-policy-2023-isro-8581439/.
-
Government of India, Space Reforms Booklet, (2021/09), https://transformingindia.mygov.in/ wp-content/uploads/2021/09/Space-reform-booklet-compressed-1.pdf, accessed 27 July 2024.
-
10 Kargil Review Committee, From Surprise to Reckoning: The Kargil Review Committee Report (New Delhi: Sage Publication,2000), Page No 252.
-
Dr. Rajeswari Pillai Rajagopalan, “Synergies in Space: The Case for an Indian Aerospace Command,” ORF Issue Brief #59, (2013, October), 1-6.
-
Dr. Rajeswari Pillai Rajagopalan, “Synergies in Space: The Case for an Indian Aerospace Command,”.
-
News team, “Special Cell Set Up to Counter Growing Threats to Space Assets,” The Indian Post, 10 June 2008.
-
The 2009 GoI letter Elucidating the Charter of the Newly Formed ISC, mentioned it to be the Nucleus for the future Space Command.
-
Gp Capt AK Sachdev, “How should India Exploit Space for Military Advantage,” Indian Defence Review, January 09, 2023, www.indiandefencereview.com/news/how-should-india-exploit-space-for-military-advantage/, accessed 20 July 2024.
-
Op-Vijay commenced by the Indian Army in May 1999 when approx 1500 Pakistani soldiers intruded into the Indian Territory in Kargil, Jammu and Kashmir with an aim of severing link between Kashmir and Ladakh. In a systematically planned and methodically executed operation, the dominating peaks occupied by the enemy were attacked and recaptured by the Indian Army.
-
Operation Safed Sagar was the code name assigned to the Indian Air Force's role in acting jointly with the Ground troops during the 1999 Kargil war that was aimed at flushing out regular and irregular troops of the Pakistani Army from vacated Indian Positions in the Kargil sector along the Line of Control.
-
Ministry of Defence, Government of India, Annual Report 2018-19, https://www.mod.gov.in/ annual-report, accessed 27 July 2024.
-
Indian Space Research Organisation, Department of Space, “New Space India Limited,” https://www.isro.gov.in/NSIL.html, accessed 27 July 2024.
-
Indian Space Research Organisation, Department of Space, “Indian National Space Promotion and Authorisation Centre,” https://www.inspace.gov.in/inspace?id=inspace_index, accessed 28 July 2024.
-
Ministry of Defence, “Prime Minister Shri Narendra Modi inaugurates DefExpo22 in Gandhinagar, Gujarat,” PIB Delhi, https://pib.gov.in/PressReleasePage.aspx?PRID=1869117 #:~:text=Mission%20Def%2DSpace%2C%20launched%20by,requirements%20in%20the%20s pace%20domain, accessed 17 September 2024.
-
Armed Forces Ministry, Government of France, Report of the Space Working Group, 2019.
-
French Space Command, Government of France, “ Operational Units,” https://en.wikipedia.org/wiki/French_Space_Command accessed 24 November 2024.
-
French Space Command, Government of France, “Operational Units,”.
-
USSF Commercial Space Strategy, “Accelerating the Purposeful Pursuit of Hybrid Space Architecture,” Space Form, https://www.spac eforce.mil/Portals/ 2/Doc uments/ Space %20P olicy/USSF_Commercial_Space_Strategy.pdf, accessed 16 September 2024.
-
USSF Commercial Space Strategy, “Accelerating the Purposeful Pursuit of Hybrid Space Architecture.”
-
Arjun Subramanium (Retd), “India Playing Catch Up in Military Exploitation of Space,” The Week Magazine, February 04, 2024, https://www.theweek.in/theweek/cover/2024/01/27/india-is-playing-catchup-in-the-military-exploitation-of-space-in-a-fragile-global-security-environment.html, accessed 30 September 2024.


