- July 5, 2024
- Posted by: admin
- Categories: Economics, Emilio Cozzi
New agreements have been signed between ISRO and NASA and between the security advisors of the two countries: Indian astronauts on the ISS and collaboration for the Lunar Gateway. For the United States, India is a crucial ally, especially in an anti-China perspective, as the Subcontinent’s space economy takes off.
BY EMILIO COZZI
It’s impossible to claim not to have seen it coming. India landed on the Moon on August 23, 2023, becoming the fourth nation to set foot on lunar soil. This achievement, soon followed by Japan and the first private ventures, had only been accomplished by Russia, the United States, and China until then.
It happened while the 15th BRICS summit was being held at the Sandton Convention Centre in Johannesburg.
It was a prime opportunity for Prime Minister Narendra Modi, newly re-elected, to showcase to the world how his country should already be considered among the new, great entities set to lead in the field of innovation.
India is a giant with enormous strategic weight due to its position and influence, GDP, and population. New Delhi’s ambitions beyond the atmosphere are being closely watched by Washington. Last year, in June, the two powers had already signed significant agreements on many issues. On that occasion, Modi met President Joe Biden and signed the Artemis Accords, becoming the 27th signatory. These are a set of common principles to regulate lunar exploration and resource exploitation in the coming years.
All signs confirm it: New Delhi has decided to carve out a place among the greats wherever possible.
Renewed Agreements, Space, and Technology
In mid-June, during a new meeting to advance the U.S.-India initiative on Critical and Emerging Technology (iCET), U.S. National Security Advisor Jake Sullivan and his Indian counterpart Ajit Doval made “significant progress towards deepening and expanding strategic cooperation in key technological areas such as space, semiconductors, advanced telecommunications, artificial intelligence, quantum technologies, biotechnology, and clean energy.”
America seeks and finds in India a partner to counter Asian competition, which in some cases is overwhelming, such as in semiconductors (dominated by Taiwan, overshadowed by Beijing) or rare earths, where China leads with a solid margin (also felt in Europe’s electric vehicle market).
The broad collaboration plan includes allocating $90 million over the next five years to the U.S.-India Global Challenges Institute, with funds for universities and research centers, as well as companies and startups in both the U.S. and India.
Within this framework, involving Defense as well, the cooperation for space strengthens. The already announced agreement ensures “a vehicle for the first joint effort between NASA and ISRO astronauts on the International Space Station” and the training of Indian astronauts at the Johnson Space Center. Additionally, it includes the launch of NISAR, a satellite designed by the U.S. and built by India, equipped with synthetic aperture radar for Earth observation. Notably, a new partnership is starting between the U.S. Space Force and Indian startups 114ai and 3rdiTech, to “advance space situational awareness, data fusion technologies, and semiconductor manufacturing for infrared sensors.”
At Vandenberg Space Force Base in California, India participated as an observer in the recent Global Sentinel Exercise, where 25 countries tackled different scenarios in the space domain, such as tracking objects in orbit, within the scope of space situational awareness. Finally, foundations have been laid for ISRO’s collaboration on the lunar orbiting space station, the Lunar Gateway, an international program led by the U.S. with contributions from Canada, Europe, Japan, and the United Arab Emirates.
Meanwhile, the Asian giant has already achieved significant milestones: as mentioned, in August 2023, it successfully landed the lander and rover of the Chandrayaan-3 mission in the lunar south pole region, the first to explore that area. India’s deep space adventure began ten years earlier with Mangalyaan, the Mars Orbiter Mission, launched in 2013 and successfully entering Mars’ orbit in September the following year. India has also launched over a hundred satellites and missions into orbit, half of which in the last decade.
ISRO is developing Gaganyaan, its own crewed spacecraft, and in February 2024, it selected the first four astronauts of the new era – informally called vyomanauts, from the Sanskrit “vyoma” meaning space or sky. These are likely to train with NASA. The Gaganyaan program includes an uncrewed test flight by the end of this year and a crewed mission in 2025.
In addition to the current fleet of rockets (three, all relatively “light,” yet competitive on the international market), India is developing heavy launchers for large payloads and human transport.
In other words, New Delhi is becoming self-sufficient for all space access needs and may have a crew transport vehicle before Europe.
Opening to Foreign and Private Entities
Since ISRO’s founding in 1969, various state-owned companies like Hindustan Aeronautics Limited (HAL) or Antrix Corporation, and private companies like Godrej Aerospace, Ananth Technologies, and Larsen & Toubro have contributed to producing rockets, satellites, and other space components for the national agency. However, the first major boost to the private space sector came in 2020 with the establishment of the Indian National Space Promotion and Authorization Center (In-Space), tasked with promoting, authorizing, and overseeing various non-governmental space activities, i.e., private entities.
Although still heavily dependent on government investments, last year the “India Space Policy 2023” set a new paradigm: “Enhance space capabilities; enable, encourage, and develop a thriving commercial presence in space; use space as a driver of technological development and its resulting benefits in related fields; pursue international relations and create an ecosystem for effective implementation of space applications among all stakeholders.” This was the final, imperative, green light for new achievements.
This year, the government has allowed 100% foreign direct investment in space technologies, a move that, according to analyses, boosted sector shares by 7%. Foreign investments have poured in, as have collaborations, including with the United States and Italy, recently present at the India Space Congress.
The Great India
India’s space economy is worth about $8 billion, roughly twice that of Italy. According to a Deloitte Consultancy report, private investments increased by 77% between 2021 and 2022, and there are nearly 190 new space startups. This indicates the sector’s untapped potential. According to In-Space estimates, “the Indian space economy has the potential to reach $44 billion in the next ten years,” almost five times its current value. This growth is expected to be driven by opening up to investors and collaborations abroad, but with a clear mantra: manufacturing must be Made in India.
These are impressive but not unrealistic figures. Remember the obvious: India has over 1.4 billion citizens, making it the most populous country in the world (the G7 countries plus all of Europe together don’t even come close) and is the fifth largest economy globally. Its GDP is nearing that of Germany, and importantly, in the Eastern region, it is a formidable competitor to China.
For these reasons, the United States wants India on its side. Even beyond the atmosphere.