CNN
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India is one of the world’s leading space nations. It was the first Asian country to reach orbit around Mars, and the fourth country on Earth to reach the moon by spacecraft, landing closer to the Antarctic than any other country, known for its cratered terrain.
However, India’s private sector plays a limited role in space exploration, acting primarily as a supplier and vendor to the country’s space agency, the Indian Space Research Organization (ISRO).
The situation is rapidly changing due to a series of government reforms aimed at promoting private participation in the space sector. In the United States, the proliferation of private companies like Elon Musk’s SpaceX is driving down costs and increasing Washington’s space ambitions.
Currently, India’s homegrown startups like Skyroot Aerospace, which launched the country’s first private rocket in 2022, are at the forefront of commercializing India’s space sector and strengthening its position as a space power.
Inside a swanky rocket hangar in the southern city of Hyderabad, the company is preparing to launch its seven-story Vikram 1 rocket, which will carry India’s first privately launched satellite into orbit.
“It would be a huge milestone for us,” Pawan Chandana, a former ISRO scientist who co-founded Skyroot Aerospace in 2018, told CNN. “There are still very few companies around the world that can get off the ground.”
India is pursuing pioneering national initiatives, including plans to set up its own space station by 2035 and land Indian astronauts on the moon by 2040.
Meanwhile, Prime Minister Narendra Modi, who is currently running for a third consecutive term, has made major advances in the commercialization of space activities in recent years, including allowing private companies to participate and relaxing approvals for foreign investment in the space field. ing.
Companies around the world are projecting thousands of satellites into low Earth orbit (LEO), which extend to altitudes of about 2,000 kilometers (1,200 miles), creating megaconstellations (groups of small satellites that work together to transmit broadband internet to the ground). ) is formed. user.
According to analysis firm Blythetech, 96% of spacecraft launched in 2022 will be small satellites, up from 61% in 2013.
That’s driving exponential growth. The global space economy could be worth $630 billion in 2023 and grow to $1.8 trillion by 2035, according to a report by McKinsey & Company and the World Economic Forum.
Skyroot wants to capture the small satellite market, with plans to offer customized launches for satellites under 500 kilograms (1,100 pounds).
The organization’s satellites often piggyback on “rideshare” missions. For example, SpaceX’s trip last year launched 51 small satellites into orbit for multiple companies using a Falcon 9 rocket capable of carrying 22,000 kilograms (48,500 pounds) in LEO.
However, there is often a wait time before boarding the vehicle, and the satellite can only reach in the direction the rocket is heading. This can be a disadvantage for satellites that want to reach specific orbits and observe specific parts of the planet.
This model has its advantages. SpaceX says it costs about $6,000 per kilogram to load a 500-kilogram (1,100-pound) payload into LEO.
“What SpaceX is currently offering is really, really competitive,” said Susmita Mohanty, director of Spaceport Sarabhai, an Indian think tank.
Skyroute hopes to offer dedicated launches for $20,000 per kilogram, which is much more expensive than SpaceX’s bespoke service. (Chandana says further cost reductions could be possible through mass production and improved technology).
Chandana compares SpaceX’s ride-sharing mission to a “train to space” and Skyroute’s business to “a taxi to space, where it takes satellites to customized locations.” .
He added: “We’re not in direct competition with SpaceX because they’re focused on larger vehicles and satellites. And what we’re focused on is customized launch solutions. ” he added.
Lower prices will likely increase interest from “people who want to choose a dedicated launch without compromising a rideshare mission,” he said.
Customized launches may be useful for those who want to send smaller payloads with the aim of reaching “diverse trajectories” that may not be reachable with ride-sharing, says the Center for Strategy and Aerospace Security says project director Kari Bingen. International Studies is a think tank based in the United States.
That could be beneficial to commercial companies, academic institutions and governments willing to pay the price, she added.
Chandana points to the “frugality that is in the DNA” of India’s space program and is optimistic that it can be made more affordable. (The budget for the country’s Mars rover was just $74 million, which Prime Minister Modi notes cost less than Hollywood’s sci-fi thriller “Gravity.”)
Chandana added that the company ultimately aims to produce reusable rockets, which will help SpaceX reduce launch costs.
According to a report released by Deloitte in 2023, India now has about 200 space startups, up from just one in 2014. Private investment in these companies over the same period exceeded $200 million.
Skyroute has already raised $95 million, with support from Singapore’s sovereign wealth fund GIC and others. This makes the company the most funded space startup in India, according to data platform Tracxn.
However, the company has work to do to achieve profitability. Chandana says they need to demonstrate that they can consistently reach trajectory before interest “translates into contracts and helps us scale.” However, the Vikram-1 spot is fully booked with a mix of domestic and international customers.
As India’s space startups mature over the next few years, he expects the government to become a customer, enabling further growth. Many private space companies receive government revenue, including SpaceX, which has collected billions of dollars from U.S. government contracts.
The Indian government has allocated just under $1.6 billion for space program development in its 2024 interim budget. By comparison, NASA received $24.9 billion in 2024.
“Unless the government injects significant funds from India to support reforms, it will be difficult for us to match the development of the US and Chinese markets,” Mohanty said.
She added that for Indian startups to play a meaningful role in the global market, they “need to not only cater to the domestic mandate of the Indian space agency but also start bidding for contracts.”
Chandana is up for the challenge. “We want to be global.” [one of the] Top three launch companies,” he says. “My fascination with rockets became an obsession.”
