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GK NotesScience & TechnologyIndia's Private Space Sector: IN-SPACe, NSIL and Start-ups

Private Space Sector in India: IN-SPACe, NSIL and Start-ups

Complete notes on India's private space sector for exams: the roles of IN-SPACe and NSIL, the Indian Space Policy, FDI limits and the start-ups and their firsts.

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Private Space Sector in India: IN-SPACe, NSIL and Start-ups — GK24 title card
Private Space Sector in India: IN-SPACe, NSIL and Start-ups — GK24 title card

For fifty years India's space programme was the work of one organisation. ISRO designed the rockets, built the satellites, launched them and used the data, and private firms were only suppliers of parts. That changed in 2020, when the government announced reforms that let private companies, called non-government entities in the official language, carry out end-to-end space activities of their own. The Minister of State for Space said this week that the opening of the sector has slowed the loss of young engineers to other countries, which is the kind of claim a current-affairs question is built on. For an examination, however, what matters are the three institutions created or recast by the reform, the policy of 2023 that defined their roles, the foreign investment limits of 2024, and the handful of start-ups whose firsts are now standard one-line questions.

The four bodies and what each does

BodySet upRole
Department of Space1972The ministry-level department, under the Prime Minister, that frames space policy
ISRO1969Research and development: launch vehicles, satellites, planetary missions and human spaceflight
Antrix Corporation1992The first commercial arm of the Department of Space, based at Bengaluru
NewSpace India Limited (NSIL)2019Public sector company under the Department of Space; the commercial arm that owns and runs demand-driven missions and transfers technology to industry
IN-SPACe2020Single-window autonomous body, with its headquarters at Ahmedabad, that authorises, promotes and supervises the space activities of private players

The division is worth stating in one sentence, because that sentence answers most questions on the topic: ISRO does research, NSIL does business, IN-SPACe gives permission, and the Department of Space frames policy for all three.

The Indian Space Policy, 2023

The policy approved in 2023 put the new division of labour in writing. It declares that non-government entities may carry out the whole range of space activities, from building rockets and satellites to operating ground stations and selling data. ISRO is to move away from routine manufacturing towards research and advanced missions, and to hand over proven technology to industry. NSIL is to work on a commercial basis in the demand-driven mode. IN-SPACe is to be the single window for authorisation, so a company no longer has to deal with several offices. The policy also lets private players own the satellites they build and offer services from them, subject to authorisation.

Foreign investment in space, 2024

The Union Cabinet amended the foreign direct investment policy for the space sector in February 2024, and the change is one of the most frequently asked facts of the topic. The amended policy divides space activities into three groups. Manufacturing of components, systems and sub-systems for satellites and for the ground and user segment is open to foreign investment up to 100 per cent through the automatic route. Satellite manufacturing and operation, satellite data products and the ground and user segment are open up to 74 per cent through the automatic route, with government approval needed beyond that. Launch vehicles and their systems or sub-systems, and spaceports for launching and receiving spacecraft, are open up to 49 per cent through the automatic route, again with government approval beyond that. Before the amendment, satellite establishment and operation needed government approval for any foreign investment at all.

The start-ups and their firsts

CompanyBased atKnown for
Skyroot AerospaceHyderabadVikram-S, launched in November 2022 as Mission Prarambh, the first privately built Indian rocket to fly
Agnikul CosmosChennai, incubated at IIT MadrasAgnibaan SOrTeD, flown in May 2024 with a single-piece three-dimensionally printed semi-cryogenic engine, from the company's own launch pad at Sriharikota
PixxelBengaluruHyperspectral earth-imaging satellites of the Firefly series
Dhruva SpaceHyderabadSatellite platforms, deployers and ground stations
Bellatrix AerospaceBengaluruElectric and green propulsion systems for satellites
DigantaraBengaluruSpace situational awareness, that is tracking objects in orbit

Commercial missions worth remembering

  • PSLV-C51 carried Brazil's Amazonia-1 in February 2021 as the first dedicated commercial mission of NSIL.
  • GSAT-24, launched in 2022, was the first demand-driven communication satellite of NSIL, with its whole capacity leased to a single private television operator.
  • LVM3-M2 in October 2022 carried thirty-six satellites of the OneWeb constellation, the first commercial flight of the LVM3, and a second batch of thirty-six followed in 2023.
  • The PSLV is now being built by a consortium of Hindustan Aeronautics Limited and Larsen and Toubro under a contract from NSIL, the first time a complete Indian launch vehicle has been made by industry.

Where the rockets fly from

All Indian orbital launches so far have taken place from the Satish Dhawan Space Centre at Sriharikota in Andhra Pradesh, which has two operational launch pads and, since 2024, a third pad of its own built by Agnikul for small vehicles. A second spaceport is coming up at Kulasekarapattinam in the Thoothukudi district of Tamil Nadu, meant for small satellite launch vehicles: a launch southward from there can go straight over the sea without the dog-leg manoeuvre that Sriharikota needs to avoid Sri Lanka, which saves fuel and therefore allows a heavier payload.

Exam Point of View

Papers ask this topic as a set of names and years. The commonest questions are the full form and headquarters of IN-SPACe, the year NSIL was incorporated, the difference between Antrix and NSIL, and the name of the first privately built Indian rocket with its mission name. The second cluster is the 2024 foreign investment policy, where the three figures, 100, 74 and 49 per cent, are swapped between the three groups of activities. A third cluster pairs a start-up with its city or its speciality, so remember Skyroot and Agnikul before the rest. The standing trap is to confuse the bodies: Antrix is the older commercial arm, NSIL the newer one, and IN-SPACe is a regulator and promoter, not a company.

Important Facts

IN-SPACe full formIndian National Space Promotion and Authorisation Centre
IN-SPACe headquartersAhmedabad, Gujarat
IN-SPACe announced2020, as an autonomous body under the Department of Space
NSIL incorporated2019; headquarters Bengaluru
Antrix Corporation1992, the first commercial arm of the Department of Space
Indian Space PolicyApproved in 2023; allows end-to-end space activity by non-government entities
First private Indian rocketVikram-S of Skyroot Aerospace, November 2022, Mission Prarambh
Agnibaan SOrTeDAgnikul Cosmos, 2024; single-piece 3D-printed semi-cryogenic engine
FDI, components and sub-systemsUp to 100 per cent through the automatic route
FDI, satellite manufacturing and operationUp to 74 per cent automatic, beyond that government route
FDI, launch vehicles and spaceportsUp to 49 per cent automatic, beyond that government route
First dedicated commercial mission of NSILPSLV-C51 with Amazonia-1 of Brazil, February 2021
Second spaceportKulasekarapattinam, Thoothukudi district, Tamil Nadu, for small satellite launch vehicles
Existing spaceportSatish Dhawan Space Centre, Sriharikota, Andhra Pradesh

Practice MCQs on this topic

Q1.Science & TechnologyEasy

Where is the headquarters of IN-SPACe, the single-window agency for India's private space activity, located?

  1. A.Bengaluru
  2. B.Ahmedabad
  3. C.Hyderabad
  4. D.Thiruvananthapuram
Show answer
Correct answer: B. Ahmedabad

Explanation

The correct answer is B, Ahmedabad. The Indian National Space Promotion and Authorisation Centre, IN-SPACe, is an autonomous body under the Department of Space with its headquarters at Ahmedabad in Gujarat, the city where India's space programme itself began at the Physical Research Laboratory founded by Vikram Sarabhai. IN-SPACe authorises and supervises the space activities of private companies and lets them use ISRO's facilities. Option A is wrong because Bengaluru is the headquarters of ISRO itself, of Antrix Corporation and of NewSpace India Limited, which is why it is the common wrong choice here. Option C is wrong because Hyderabad is the home of the launch-vehicle start-up Skyroot Aerospace and of ISRO's Nuclear Fuel Complex neighbours, not of IN-SPACe. Option D is wrong because Thiruvananthapuram hosts the Vikram Sarabhai Space Centre, where launch vehicles are developed.

Q2.Science & TechnologyEasy

NewSpace India Limited (NSIL), the commercial arm of the Department of Space, was incorporated in which year?

  1. A.1992
  2. B.2019
  3. C.2020
  4. D.2023
Show answer
Correct answer: B. 2019

Explanation

The correct answer is B, 2019. NewSpace India Limited was incorporated in 2019 as a public sector undertaking under the Department of Space, with its registered office at Bengaluru. It runs demand-driven missions, owns and operates satellites, has launch vehicles built by Indian industry and transfers ISRO's technology to private firms. Option A is wrong because 1992 is the year Antrix Corporation, the older commercial arm of the department, was set up; a question often pairs the two years to see whether a candidate can tell the two companies apart. Option C is wrong because 2020 is the year the space sector reforms were announced and IN-SPACe was created. Option D is wrong because 2023 is the year the Indian Space Policy was approved, which defined the roles of ISRO, NSIL and IN-SPACe.

Q3.Science & TechnologyEasy

Which was the first rocket built by an Indian private company to be launched?

  1. A.Agnibaan
  2. B.Vikram-S
  3. C.SSLV-D1
  4. D.Rohini-75
Show answer
Correct answer: B. Vikram-S

Explanation

The correct answer is B, Vikram-S. Vikram-S was built by Skyroot Aerospace of Hyderabad and flew a sub-orbital mission from Sriharikota in November 2022 under the name Mission Prarambh, which means beginning. It was the first rocket designed and built by an Indian private company to fly, and it is named after Vikram Sarabhai. Option A is wrong because Agnibaan, of Agnikul Cosmos, flew later, in 2024, although its SOrTeD flight set its own record for a single-piece three-dimensionally printed engine. Option C is wrong because the Small Satellite Launch Vehicle is ISRO's own rocket and its first developmental flight was in 2022 from Sriharikota. Option D is wrong because Rohini sounding rockets are ISRO's own series, flown since the early years of the programme.

Q4.Science & TechnologyMedium

The flight of Vikram-S in November 2022 was given which mission name?

  1. A.Prarambh
  2. B.SOrTeD
  3. C.Pragyan
  4. D.Prathama
Show answer
Correct answer: A. Prarambh

Explanation

The correct answer is A, Prarambh. Skyroot Aerospace named the maiden flight of Vikram-S Mission Prarambh, a Sanskrit word meaning beginning, because it was the first flight by a private Indian rocket. The vehicle rose on a sub-orbital path from a launch pad at the Satish Dhawan Space Centre and carried three small customer payloads. Option B is wrong because SOrTeD, short for Sub-Orbital Technology Demonstrator, is the name of the Agnikul Cosmos flight of Agnibaan in 2024, a different company and a different year. Option C is wrong because Pragyan is the name of the rover carried by India's Chandrayaan missions to the Moon. Option D is wrong because Prathama is not the name of any Indian space mission, and is included only as a plausible-sounding distractor.

Q5.Science & TechnologyMedium

Agnibaan SOrTeD, flown in 2024, is notable for which technological first?

  1. A.The first Indian rocket to use solid propellant
  2. B.The first flight with a single-piece three-dimensionally printed semi-cryogenic engine
  3. C.The first Indian rocket to reach orbit
  4. D.The first reusable Indian booster to land back
Show answer
Correct answer: B. The first flight with a single-piece three-dimensionally printed semi-cryogenic engine

Explanation

The correct answer is B. Agnibaan SOrTeD, flown by Agnikul Cosmos of Chennai in 2024, carried the Agnilet engine, a semi-cryogenic engine printed as a single piece, and it lifted off from a launch pad the company had built for itself at the Satish Dhawan Space Centre. Both the printed engine and the private launch pad were firsts for India. Option A is wrong because solid propellant has been used in Indian rockets since the Rohini sounding rockets and the SLV-3; Agnibaan in fact uses a liquid and gaseous combination. Option C is wrong because SOrTeD was a sub-orbital technology demonstration and did not attempt orbit; the first Indian rocket to reach orbit was the SLV-3 in 1980. Option D is wrong because no Indian booster has yet landed back for reuse, although ISRO has tested landing technologies separately.

Q6.Science & TechnologyMedium

Antrix Corporation, the first commercial arm of the Department of Space, was established in which year?

  1. A.1969
  2. B.1972
  3. C.1992
  4. D.2003
Show answer
Correct answer: C. 1992

Explanation

The correct answer is C, 1992. Antrix Corporation Limited was set up in 1992 at Bengaluru as a wholly government-owned company under the Department of Space, to market the products and services of the Indian space programme abroad, including launch services, satellite capacity and remote sensing data. Option A is wrong because 1969 is the year ISRO itself was formed, on the fifteenth of August. Option B is wrong because 1972 is the year the Space Commission and the Department of Space were created, which brought the programme under a department reporting to the Prime Minister. Option D is wrong because no space body of note was created in 2003; the next commercial body after Antrix was NewSpace India Limited in 2019, and the examiner's trap is to mix up the two companies and their years.

Q7.Science & TechnologyEasy

Which body is the single window for authorising the space activities of private companies in India?

  1. A.ISRO
  2. B.NSIL
  3. C.IN-SPACe
  4. D.Antrix Corporation
Show answer
Correct answer: C. IN-SPACe

Explanation

The correct answer is C, IN-SPACe. Under the reforms of 2020 and the Indian Space Policy of 2023, the Indian National Space Promotion and Authorisation Centre is the single-window autonomous body that authorises, promotes, hand-holds and supervises the space activities of non-government entities, and that permits them to use the facilities of the Department of Space. Option A is wrong because ISRO is the research and development agency; under the new division of labour it is to concentrate on advanced missions and transfer proven technology to industry rather than regulate it. Option B is wrong because NSIL is a commercial company, a buyer and seller in the market, not a regulator. Option D is wrong because Antrix is the older commercial arm and also has no regulatory role; mixing up the regulator with the two commercial companies is the usual mistake.

Q8.Science & TechnologyHard

Under the foreign direct investment policy amended in 2024, foreign investment in satellite manufacturing and operation is allowed up to what level through the automatic route?

  1. A.49 per cent
  2. B.51 per cent
  3. C.74 per cent
  4. D.100 per cent
Show answer
Correct answer: C. 74 per cent

Explanation

The correct answer is C, 74 per cent. The amendment approved by the Union Cabinet in February 2024 divides space activities into three groups with different automatic-route ceilings. Satellite manufacturing and operation, satellite data products and the ground and user segment are open to foreign investment up to 74 per cent through the automatic route, and investment beyond that level requires government approval. Option A is wrong because 49 per cent is the automatic-route ceiling for launch vehicles, their systems or sub-systems, and spaceports. Option B is wrong because 51 per cent is not a ceiling used anywhere in the space policy, although it appears in other sectors. Option D is wrong because 100 per cent through the automatic route applies only to the manufacture of components, systems and sub-systems for satellites and for the ground and user segment.

Q9.Science & TechnologyMedium

In which space activity is foreign direct investment allowed up to 100 per cent through the automatic route?

  1. A.Launch vehicles and spaceports
  2. B.Satellite operation and data products
  3. C.Manufacturing of components and sub-systems
  4. D.No space activity is open to 100 per cent automatic investment
Show answer
Correct answer: C. Manufacturing of components and sub-systems

Explanation

The correct answer is C, manufacturing of components and sub-systems. Under the policy amended in 2024, the manufacture of components, systems and sub-systems for satellites and for the ground and user segment is open to foreign direct investment up to 100 per cent through the automatic route, the most liberal of the three groups, because it is a manufacturing activity with the least strategic sensitivity. Option A is wrong because launch vehicles and spaceports are open only up to 49 per cent through the automatic route, government approval being needed beyond that. Option B is wrong because satellite manufacturing and operation and data products stand at 74 per cent automatic. Option D is wrong because the whole point of the amendment was to allow full automatic-route investment in the component segment, where before it the rules were far tighter.

Q10.Science & TechnologyMedium

The Indian Space Policy, which allows non-government entities to carry out end-to-end space activities, was approved in which year?

  1. A.2019
  2. B.2020
  3. C.2023
  4. D.2024
Show answer
Correct answer: C. 2023

Explanation

The correct answer is C, 2023. The Indian Space Policy was approved in 2023 and set out in writing the division of work that the reforms of 2020 had begun: private companies, called non-government entities, may carry out the whole range of space activities; ISRO is to concentrate on research and advanced missions; NSIL is to act commercially in the demand-driven mode; and IN-SPACe is to be the single window for authorisation. Option A is wrong because 2019 is the year NSIL was incorporated. Option B is wrong because 2020 is the year the reforms were announced and IN-SPACe was created, before any policy document existed. Option D is wrong because 2024 is the year of the foreign direct investment amendment for the space sector, a separate decision taken by the Union Cabinet.

Q11.Science & TechnologyHard

India's second spaceport, meant for small satellite launch vehicles, is being built at Kulasekarapattinam in which state?

  1. A.Andhra Pradesh
  2. B.Kerala
  3. C.Tamil Nadu
  4. D.Odisha
Show answer
Correct answer: C. Tamil Nadu

Explanation

The correct answer is C, Tamil Nadu. Kulasekarapattinam lies in the Thoothukudi district of Tamil Nadu, on the southern coast, and is being developed as a spaceport for small satellite launch vehicles. Its advantage is geographical: a rocket launched southward from there flies straight out over the sea, while one launched from Sriharikota has to turn to avoid passing over Sri Lanka, and avoiding that turn saves fuel and allows a heavier payload. Option A is wrong because Andhra Pradesh is where the existing spaceport, the Satish Dhawan Space Centre at Sriharikota, stands. Option B is wrong because Kerala hosts the Vikram Sarabhai Space Centre and the Thumba Equatorial Rocket Launching Station, used for sounding rockets, not orbital launches. Option D is wrong because Odisha has the Chandipur integrated test range, which is a missile testing range of the defence establishment.

Frequently Asked Questions

What is the full form of IN-SPACe and what does it do?

IN-SPACe stands for the Indian National Space Promotion and Authorisation Centre. Announced in 2020 and based at Ahmedabad, it is an autonomous single-window body under the Department of Space that authorises, promotes and supervises the space activities of private companies and allows them to use ISRO's facilities.

What is the difference between Antrix and NSIL?

Both are commercial arms of the Department of Space. Antrix Corporation, set up in 1992 at Bengaluru, handled the marketing of ISRO's products and services. NewSpace India Limited, incorporated in 2019, is the newer company and carries out demand-driven missions, owns satellites, builds launch vehicles through industry and transfers ISRO's technology to private firms.

Which was the first privately built Indian rocket?

Vikram-S, built by Skyroot Aerospace of Hyderabad, which flew in November 2022 from Sriharikota on a sub-orbital flight named Mission Prarambh. It was the first rocket designed and built by an Indian private company to fly, and it is named after Vikram Sarabhai, the founder of India's space programme.

How much foreign direct investment is allowed in India's space sector?

Under the policy amended in 2024, manufacturing of components and sub-systems is open up to 100 per cent through the automatic route; satellite manufacturing and operation, data products and the ground and user segment up to 74 per cent automatic; and launch vehicles, their sub-systems and spaceports up to 49 per cent automatic. Investment beyond those levels needs government approval.

Why is a new spaceport being built at Kulasekarapattinam?

A rocket launched southward from the southern tip of Tamil Nadu can fly straight over the sea, while one launched from Sriharikota must make a turn to avoid passing over Sri Lanka. Avoiding that manoeuvre saves fuel and allows a heavier payload, which suits the small satellite launch vehicles the new spaceport is meant for.

Sources

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