India's Pioneering Space Travel Venture: Transforming Satellite Launches

India is a leading spacefaring nation in the world. It made history by becoming the first Asian country to successfully reach Mars orbit. Additionally, India is the fourth country globally to land a spacecraft on the moon, specifically close to the south pole with its rugged, cratered terrain.

Despite its achievements in space exploration, India's private sector has had a minimal role in this field. Instead, the private sector mainly serves as suppliers and vendors for the country's national space agency, the Indian Space Research Organization (ISRO).

Government reforms are quickly changing the landscape of the space sector, with a focus on increasing private involvement. In the United States, the presence of private companies such as SpaceX, led by Elon Musk, has helped to reduce costs and elevate Washington's space aspirations.

Indian startups like Skyroot Aerospace are now taking the lead in commercializing India's space sector. In 2022, Skyroot Aerospace successfully launched the country's first private rocket, contributing to India's goal of becoming a space superpower.

Inside a modern rocket hangar located in Hyderabad, a southern city, preparations are underway for the launch of the Vikram-1 rocket. This seven-story tall rocket will carry India's first privately launched satellites into orbit.

Pawan Chandana, a co-founder of Skyroot Aerospace in 2018 and a former ISRO scientist, shared with CNN, "This will be a significant achievement for us. Only a few companies worldwide have successfully reached orbit so far."

Pawan Chandana, the co-founder of Skyroot Aerospace

Pawan Chandana, the co-founder of Skyroot Aerospace

Skyroot Aerospace Pvt. Ltd.

India is pushing pioneering national initiatives, including plans to have its own space station by 2035 and to put an Indian astronaut on the moon by 2040.

Prime Minister Narendra Modi, who is seeking a third consecutive term, has been focusing on boosting commercial space activities. This includes opening up opportunities for private companies to get involved and making it easier for foreign investments to flow into the space sector.

One exciting aspect of this push is the increasing interest in small satellites. These smaller satellites offer a big opportunity for innovation and growth in the space industry.

Companies worldwide are launching thousands of satellites into low Earth orbit (LEO), which is about 2,000 kilometers (1,200 miles) above the Earth's surface. These satellites are forming mega-constellations, where groups of small satellites collaborate to provide broadband Internet to people on the ground.

In 2022, analytics firm BryceTech reported that 96% of the spacecraft launched were small satellites. This is a significant increase from 2013, when only 61% of satellites launched were small.

The global space economy is experiencing rapid growth. In 2023, it was valued at $630 billion, a report by McKinsey & Company and the World Economic Forum revealed. Experts predict that by 2035, it could reach $1.8 trillion.

Skyroot aims to tap into the small satellite market by providing tailored launch services for satellites weighing under 500 kilograms (1,100 pounds).

Many organizations take advantage of "rideshare" missions to launch their satellites into orbit. For instance, last year, SpaceX used its Falcon 9 rocket to launch 51 small satellites for various companies. This rocket is capable of carrying 22,000 kilograms (48,500 pounds) into Low Earth Orbit (LEO).

However, there are limitations to hitching a ride on these missions. Satellites may have to wait for their turn, and they can only be placed in orbits that align with the rocket's trajectory. This could be problematic for satellites that need to reach specific orbits for observing particular areas on Earth.

The model does provides advantages. SpaceX says the cost of getting a 500-kilogram (1,100 pound) payload into LEO is about $6,000 per kilogram.

Prime Minister Narendra Modi speaks at the launch of space infrastructure projects at Vikram Sarabhai Space Centre (VSSC), in Thiruvananthapuram, India on February 27, 2024

Prime Minister Narendra Modi speaks at the launch of space infrastructure projects at Vikram Sarabhai Space Centre (VSSC), in Thiruvananthapuram, India on February 27, 2024

ANI/Reuters

Susmita Mohanty, director general of Indian think-tank Spaceport Sarabhai, praises the highly competitive offerings of SpaceX.

Skyroot aims to provide dedicated launches at a price of $20,000 per kilogram, although this is more expensive than SpaceX's more generic service. Chandana suggests that mass production and advancements in technology could lead to lower costs in the future.

Chandana describes SpaceX's ridesharing missions as a "train to go to space" and Skyroot's operations as "cabs to get into space", where they take satellites to their specific locations. He explains that Skyroot doesn't compete directly with SpaceX, as SpaceX focuses on larger vehicles and satellites, while Skyroot specializes in customized launch solutions.

Once prices decrease, there will be a greater interest in individuals who prefer dedicated launches without having to compromise by opting for a rideshare mission.

For those looking to send smaller payloads to a variety of orbits that may not be accessible through ridesharing, customized launches could be a valuable option, according to Kari Bingen, director of the Aerospace Security Project at the Center for Strategic and International Studies, a US-based think-tank.

Chandana is optimistic that he can make it more affordable, pointing to the "frugality in the DNA" of India's space program. The country's Mars orbiter budget was only $74 million, which was highlighted by Modi as costing less than the Hollywood sci-fi thriller "Gravity." This could be beneficial for commercial companies, academic institutions, or governments willing to pay the price.

Chandana adds that the company aims to build a reusable rocket eventually, a capability which has helped SpaceX reduce launch costs.

Hurdles to clear

India now has nearly 200 space startups, a significant increase from only one in 2014, as reported by Deloitte in 2023. During this time, private investment in these companies has exceeded $200 million.

One standout example is Skyroot, which has successfully raised $95 million in funding. Notable backers include the Singapore sovereign wealth fund GIC. This achievement has positioned Skyroot as the most well-funded space startup in India, according to data from Tracxn.

The company still has work to do to achieve profitability. Chandana emphasizes the importance of consistently reaching orbit to attract interest and secure contracts for scaling up. Currently, all spots on Vikram-1 are fully booked with a diverse range of domestic and international clients.

As Indian space startups evolve in the future, Chandana anticipates that the government will become a customer, leading to additional growth opportunities. This trend is seen in many private space companies, such as Space X, which has generated substantial revenue from government contracts in the United States.

In November 2022, Skyroot Aerospace launched India's first privately built rocket, Vikram-S.

In November 2022, Skyroot Aerospace launched India's first privately built

rocket, Vikram-S.

Skyroot Aerospace Pvt. Ltd.

India's government set aside nearly $1.6 billion for its space program in the 2024 interim budget. In contrast, NASA was allocated $24.9 billion for the same year.

Mohanty believes that without substantial funding from India, it will be challenging to compete with the progress of the US or Chinese markets, even with the government's reforms.

Chandana is eager for Indian startups to make a significant impact in the global market. She believes that in order to do so, they must move beyond catering only to our own space agency and instead actively pursue contracts internationally.

Chandana is excited about the opportunity. He expresses his ambition to be among the top three launch companies worldwide. His passion for rockets has grown into a full-blown obsession.

— Kunal Sehgal, Vijay Bedi, Rosanna Philpott and Diksha Madhok contributed reporting.

Editor's P/S:

India's growing commercial space sector, spearheaded by startups like Skyroot Aerospace, is poised to revolutionize the nation's spacefaring capabilities. By providing tailored launch services and aiming for cost-effectiveness, these startups are creating new opportunities for satellite deployment and innovation. The government's focus on increasing private involvement and promoting small satellite ventures further fuels this growth.

However, challenges remain. Funding limitations compared to global counterparts and the need to secure consistent contracts for scaling up operations are hurdles that Indian space startups must overcome. Collaboration with the government as a customer and expanding the scope of international contracts will be crucial for these businesses to achieve their full potential and propel India into the top ranks of the global space industry.