Despite its reputation, India’s per-unit space launch cost highest: study
India, according to an analysis of more than six decades of space missions, simply does not launch often enough to bring its costs down
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Context
A peer-reviewed study published in Economics Letters reveals that India's per-kilogram cost for launching payloads into Low Earth Orbit (LEO) is the highest among major spacefaring nations, contradicting its long-held reputation for cost-effective space missions. The analysis attributes this to 's reliance on smaller launch vehicles and a lower frequency of launches compared to global competitors, which prevents the realization of economies of scale.
UPSC Perspectives
Economic
This news provides a practical example of economies of scale (cost advantages that enterprises obtain due to size, output, or scale of operation). The study highlights the concept of an experience curve (costs falling steadily as cumulative production/launches grow), noting that only the US and Europe have demonstrated this significantly since 2010. India's higher per-kilogram launch cost ($13,302 compared to the global average of $3,868) is driven by the use of smaller rockets like the (Polar Satellite Launch Vehicle), where the high fixed costs of a launch are distributed over a smaller payload capacity. To lower per-unit costs, India needs to increase its launch cadence (frequency) and transition towards heavier launch vehicles and reusable launch technology, which spreads fixed costs over more missions and larger payloads.
Science & Technology
The findings challenge the narrative surrounding India's space program, historically celebrated for its frugal engineering—exemplified by the low cost of the (Mars Orbiter Mission). However, it is crucial to distinguish between overall mission cost and per-unit launch cost. While can execute complex missions on a tight budget, its commercial competitiveness in the global launch market is hindered by the lack of heavy-lift capacity and reusability. The transition to the (Launch Vehicle Mark-3, formerly GSLV Mk III) is a step towards heavier payloads, but global competitors like SpaceX have revolutionized the market with reusable rockets (like the Falcon 9), significantly driving down per-kilogram costs. UPSC aspirants must understand this shift in the commercial space market, emphasizing the need for to operationalize next-generation, high-capacity, and reusable launch vehicles to remain competitive.
Governance
The study underscores the importance of the recent space sector reforms in India. The establishment of (Indian National Space Promotion and Authorization Centre) and (NSIL) aims to enhance private sector participation and commercialize space activities. To address the low launch frequency and high costs identified in the study, private players must be integrated into the manufacturing and launch processes, scaling up production of vehicles like the (Small Satellite Launch Vehicle) for frequent, low-cost commercial launches. The Indian Space Policy 2023 provides the framework for this transition, envisioning a larger share for India in the global space economy (currently around 2%). Enhancing private participation is essential to create the scale and innovation necessary to bring down the per-unit cost and compete globally.