Answer: India is rapidly advancing in space exploration, having achieved the feat of landing on the Moon’s south pole and gaining a reputation as a cost- competitive space industry. India has entered the sphere of privatising space launches and is now considering opening the sector to foreign investment.

Need of increased private sector participation in Indian space industry:

• Innovation Ecosystem: Fostering private sector participation can spur R&D, encouraging young entrepreneurs and startups to venture into space-related technologies.
• Vast resources with private sector can help fill in the communication infrastructure deficit by looking for space-based solutions beyond the traditional modes of internet delivery.
• Technological Advancement: Private sector participation brings in additional resources, expertise, and innovation leading to the development of cutting-edge technologies.
• For example, Hyderabad-based startup Dhruva Space is working on high-technology solar panels for satellites  
• Cost-Efficiency: More flexibility and cost-effectiveness compared to government agencies can help to reduce expenses in space missions. 
• For example, Agnikul and Skyroot from Chennai and Hyderabad are developing launch vehicles to initiate low cost space launching. 
• Economic Growth: Private sector in the space industry can help in the growth of related industries like manufacturing, research, and services. This can create jobs and contribute to economic development.
•  The Indian space sector is projected to increase at a ~48% CAGR over the next five years to reach US$ 50 billion. Private sector can drive this growth 
• Diverse Applications: With private sector participation, wide range of applications for space technology beyond government missions can benefit various sectors of the economy.
• The space industry has the potential to transform various sectors such as telecommunications, governance, agriculture, health, education, infrastructure, navigation, and strategic defence. 
• Global Competitiveness: India can become a competitive player alongside established space powers by actively participating in the global space industry.
• On private entrepreneurs’ involvement, India can emerge as a big player in ‘space tourism’ and ‘space diplomacy’.

Steps by Indian Government(Institutional measures and policy measures)

Institutional Measures

• Formation of IN-SPACe: The Indian National Space Promotion and Authorisation Centre (IN-SPACe) was established in 2020 for regulating the involvement of private sector entities in space activities.
• 'New Space India Limited (NSIL): A PSU as the commercial arm of ISRO for enabling Indian industries to take up space-related activities and commercial exploitation of the services emanating from the Indian space programme.
• Indian Space Association (ISpA): Launched in 2021, it is the apex, non-profit industry body exclusively working towards successful exploration, collaboration, and development of private and public Space Industry in India. It will undertake Policy Advocacy, Engage and Operate with all Stakeholders and act as a catalyst for accelerating the exchange of knowledge, technology of space-related domains.
• Antrix Corporation Limited: Incorporated as a marketing arm of ISRO handling  ISRO’s commercial deals for satellites and launch vehicles with foreign customers.
• Space Entrepreneurship & Enterprise Development (SEED): a competitive early-stage encouragement programme to startups and MSMEs in focus areas of interest to ISRO

Policy Measures

• Technology Transfer: IN-SPACe and NewSpace India Ltd (NSIL) have been actively involved in transferring existing space technologies to the private sector. This facilitates the development of a collaborative ecosystem between industry, academia, and startups.
• Reduced Regulatory Barriers: The government has taken measures to reduce regulatory barriers and simplify the process for private companies to enter the space sector. This includes streamlining approval processes and providing clear guidelines for private participation.
• Space Activities Bill: The introduction of the Indian Space Activities Bill provides a regulatory framework that prioritizes the involvement of private players in the space sector. This ensures a transparent and legally sound environment for private participation.
• Production Linked Incentives (PLI) Scheme: The government has introduced schemes like the PLI to incentivize indigenous manufacturing capacity in the space industry. This encourages private companies to invest in research, development, and production capabilities.
• Foreign Direct Investment (FDI): The government is considering opening up the space sector to foreign investment, allowing for greater participation and collaboration with international entities.

Encouraging private participation could free up the ISRO to focus on R&D, interplanetary exploration and strategic launches. Simultaneously, private sector entreprises sector supports the government's vision of 'Atmanirbhar India' and 'Make in India'. Therefore, there is a need for private sector to participate in the Indian space programme and boost India's market share in the Global Space Economy