The Indian Space Policy 2023 is a comprehensive policy framework, not an Act or a scheme, that was approved by the Union Cabinet on April 6, 2023, and subsequently released by the Indian Space Research Organisation (ISRO) on April 20, 2023. Its primary vision is to augment India's space capabilities and encourage a flourishing commercial presence in the sector. The policy was formulated to implement the reform vision approved by the government in 2020, which aimed to open the doors for enhanced participation of Non-Government Entities (NGEs) in end-to-end space activities. This shift was necessary because, until the early 1990s, India's space industry was largely defined by ISRO, with private sector involvement limited to being vendors or suppliers. The policy addresses the problem of India's relatively small share in the global space economy and the need for a clear regulatory framework to foster innovation and private investment.
The policy works by clearly defining the roles of four institutional pillars: the Department of Space (DOS), ISRO, the Indian National Space Promotion & Authorisation Centre (IN-SPACe), and NewSpace India Limited (NSIL). IN-SPACe, established in 2020, is mandated to act as the single-window agency for promoting, guiding, and authorizing space activities for both government entities and NGEs. A key provision is that NGEs are now allowed to undertake end-to-end activities, including establishing and operating space objects, ground-based assets, and related services like communication and remote sensing. Furthermore, ISRO is transitioning out of the routine manufacturing of operational space systems, focusing instead on advanced research and development, while transferring mature systems to industry for commercial exploitation. NSIL, a Public Sector Undertaking created in 2019, is responsible for commercializing space technologies and platforms developed through public expenditure.
The policy connects to the earlier space reforms of 2020 and the establishment of IN-SPACe and NSIL. It also relates to the liberalization of the Foreign Direct Investment (FDI) policy in the space sector, which was amended in 2024 to allow up to 100% FDI in the manufacturing of space components and up to 74% in satellite-related activities under the automatic route. The policy replaced the earlier ISRO-centric model, which limited private players, with a collaborative ecosystem. While the policy itself is a framework, it needs to be followed up with suitable legislation, as the earlier Draft Space Activities Bill of 2017 lapsed in 2019.