MINING SPACE
The launch of the first privately owned rocket by a startup last Friday reaffirms that India's space is NOW open for business. EPISODE #100
Dear Reader,
A very Happy Monday to you.
This is a very special Monday in the short history of this newsletter: Welcome to the 100th episode.
From the beginning my intent was to track and unpack the incredible transformation of the Indian economy and the social underpinnings for you. I sought to share a different perspective about this makeover by viewing it through the intersection of politics and economics.
Happy that I stayed the course. All credit to readers like you who kept me inspired to turn up every Monday with a fresh offering. Salute to each one of you! I am very grateful for your support as well as the learnings you have frequently and generously shared.
But I would be remiss in not making a special mention of the most ardent supporters: Vandana, Gautam, Aashish and Premasundaran. It is not just about the generosity with their time, energy and encouragement. It is truly admirable and remarkable that they read every newsletter and then went the extra mile to share their thoughts, insights and even amplified it in their circles.
I would have loved to report that the growth in readership was one way. However, there are a few who voted with their feet—was sorry to see them go. But the fact is that the addition of new readers far, far outweighed the exits. So I am happy to report a very healthy expansion of the reader family in the last two years.
And of course a note of appreciation for Substack. All I had to do was to generate the content. For freelance writers like me this plug-and-play technology is life saving.
Finally, apologies for the occasional errors.
Indeed this week is also extra special for Indian private business. For long consigned to the life of a pariah, in recent years they have been accorded the status of a legitimate stakeholder in the Indian economy. Doing business is no longer a dirty word. And they are seizing the moment.
Last week India Inc broke another glass ceiling with the launch of the first privately owned rocket. And they achieved this feat just two years after the government eased the regulations, permitting the private sector to operate as partners to the Indian Space Research Organisation (Isro).
The first privately built satellite was launched in 2018 and predates the liberalisation that was undertaken in 2020.
It was therefore truly history in the making. It is the dawn of a new era. So this week I put the spotlight on the launch of the rocket built by Skyroot Aerospace and what it means for India’s plans for breaking into the lucrative business of space.
The cover picture this week is a collage of the launch of Vikram-S rocket and sourced from Isro.
A big shoutout to Sidhartha, Atul, Gautam, Abhijit, Premasundaran, Aashish and Vandana for your informed responses, kind appreciation and amplification of last week’s column. Gratitude also to all those who responded on Twitter and Linkedin. Reader participation and amplification is key to growing this newsletter community. And, many thanks to readers who hit the like button😊.
A NEW ERA
Last Friday, Skyroot Aerospace Pvt. Ltd—the Hyderabad-based startup—successfully launched its sub-orbital rocket, Vikram-S, at 11.30 am from the Satish Dhawan Space Centre, Sriharikota.
It was the first satellite launch vehicle built by an Indian company but launched using the facilities provided by the Indian Space Research Organisation (Isro). The launch followed the execution plan to the T, reaching an altitude of about 89.5 km in 155 seconds—under three minutes—before plunging into the Bay of Bengal.
There are so many fascinating ways of viewing this phenomenal success.
One, this launch was undertaken by a startup. There are about 175-200 startups operating in the space sector, which speaks for the growing entrepreneurial spirit of India.
Second, this project fructified in less than two years after the union government opened up the space sector to private participation in 2020. It demonstrates that once the government facilitates the ease of doing business, India Inc is perfectly capable of delivering on their promise.
Third, the Vikram-S class of rockets are smaller and can hence place payloads in the lower orbit more precisely.
Fourth, the production of the rocket used 3D printing and a carbon-fibre body, opening up new techniques to manufacture rockets. It is setting new standards, which will reduce the time to produce a rocket and thereby generate more business.
Finally, this textbook collaboration between the Indian private sector and Isro holds a mirror to the idea of PPP (Public Private Partnership).
In short this is the dawn of a new era for Indian space. One in which the private sector will be a partner to Isro in commercialising India’s ambitions in space.
The New Playbook
If you recall I had written a newsletter recently on how India had adopted a new playbook to break into the lucrative business of space. Last week’s launch is a reaffirmation of the fact that this new playbook is indeed effective.
The timing of my newsletter was a happy coincidence. Sharing the link below in case you wish to read it afresh.
I am also sharing the interview I did with Narayan Prasad of Satsearch for StratNews Global. Very patiently Narayan walked me through the new playbook and what it would mean for the Indian space programme. Do watch.
Reinventing Isro
The turning point for India’s space story was two years ago when the union government decided to unbundle Isro’s commercial functions. Accordingly, the NewSpace India Ltd (NSIL) was incorporated as a wholly owned government company under the Department of Space (DOS).
The idea was to unburden Isro from commercial responsibilities and instead vest it in NSIL—which if you recall inked the contract with OneWeb to launch their 36 satellites last month.
This process of unbundling also entailed the setting up of the Indian National Space Promotion and Authorisation Centre (IN-SPACe)—a single-window, independent, nodal agency that would function as an autonomous agency in DoS to approve proposals from the private sector.
In fact, the launch of the first private rocket by Skyroot Aerospace was approved by IN-SPACe. It is creating the space for enhancing private sector participation. Unlike in the past when they operated as vendors to Isro, now the private sector works as a partner.
Simultaneously, to ensure better coordination between the private sector and the government agencies, especially in ironing out any rough edges in policy, the Indian Space Association (ISpA) was set up. In fact, I had written about the birthing of ISpA in fair detail last October.
Sharing the piece below in case you wish to read it afresh.
Space Inc
It is clear then that India is etching new contours for its commercial space programme. One in which the private sector is a key stakeholder, even while the established prowess of Isro in enabling the country’s space ambitions are protected and nurtured.
Skyroot Aerospace was just first off the blocks. Next in line is Chennai-based Agnikul Cosmos, another space start-up. Their customisable rocket, which works on a 3D printed engine, is poised to be launched next year. There are several others in the pipeline.
At the same time, for the first time Isro has permitted the private sector to produce polar satellite launch vehicles (PSLVs)—the third generation rocket launchers which can place remote sensing satellites and small sized spacecrafts in space. A consortium of firms led by Hindustan Aeronautics Ltd (HAL) and Larsen & Toubro (L&T) won the Rs 860 crore bid to manufacture five PSLVs.
It is clear that India’s commercial space programme in which the private sector is a key partner is poised to cross the tipping point. Their presence is lending a new hue and heft to the national space programme.
Given that China and Russia, two other competitors in the business of satellite launches, are now global pariahs, India is looking at a bigger opportunity to break into the global space business that is poised to grow to $1 trillion.
Indeed it is a once in a lifetime opportunity for India to seize.
Recommended Viewing
Sharing the latest post on StratNews Global.
You may recall I had mentioned in last week’s newsletter that the next guest would be Rajesh Shukla, CEO of PRICE (People’s Research on the Indian Consumer Economy). And the topic was the ‘Great Indian Middle Class’.
It was a very illuminating conversation in which I learnt so many things about the Indian middle class. Basic things like its present size is 432 million—larger than the population of the United States. That it will grow to 715 million by the end of this decade and then to a staggering 1 billion in 2047.
The socio-economic transformation that this shift in demography would inspire is so difficult for us to comprehend. Exactly why you should watch this interview.
Till we meet again next week, stay safe.
Congratulations Anil for the 100th Newsletter. Many more milestones to come. Wish you All the Best.
Congratulations Anil on your century. Looking forward to your double hundred and what a pleasure to know that our startups are now reaching the skies, truly talented and deserving. Thanks always for keeping us updated with your educative write-ups.