South Asia in Orbit: Overcoming Space Tech and Supply Chain Barriers

The global space industry has seen exponential growth over the past decade, with significant contributions from regions such as the USA, Europe, and Asia. South Asia, a region with burgeoning space ambitions, has shown considerable progress in developing its space capabilities. However, a comparison with the USA highlights the challenges and opportunities for South Asia to emerge as a competitive player in the space sector.

Space Technology in the USA: A Leading Force

The USA continues to dominate the global space industry, accounting for over 40% of the $469 billion space economy as of 2024. Agencies like NASA, private players like SpaceX, and innovative startups have created a robust ecosystem for space exploration and commercial ventures. The USA’s achievements include reusable rockets, deep-space missions, satellite constellations for global connectivity, and cutting-edge technologies like AI-driven satellite operations.

The USA’s space tech ecosystem benefits from:

1. Strong Public-Private Partnerships: NASA and companies like SpaceX and Blue Origin lead innovation, cost-efficiency.
2. Advanced Manufacturing: Domestic production of critical satellite components, such as solar panels, propulsion systems, and sensors, ensures a self-reliant supply chain.
3. Robust Policies: Policies like the Artemis Accords and Space Force initiatives emphasize innovation and international collaboration.

Space Technology in South Asia: Emerging Aspirations

South Asia, led by India’s Indian Space Research Organisation (ISRO), has made commendable strides. India’s Chandrayaan-3 mission’s successful lunar landing in 2023 showcased its capability to achieve complex missions cost-effectively. Other nations, such as Pakistan and Bangladesh, are also advancing their satellite programs to address communication, agriculture, and disaster management needs.

However, South Asia faces several challenges compared to the USA:

1. Supply Chain Dependence: A significant portion of satellite components, especially solar panels, batteries, and electronic systems, is imported. For example, India imports over 70% of its satellite solar cells from countries like the USA, China, and Germany.
2. Limited Private Participation: While there are emerging startups, such as Pixxel and Skyroot Aerospace in India, the private space sector lacks the scale and resources seen in the USA.
3. Budget Constraints: Space programs in South Asia operate with significantly smaller budgets. ISRO’s annual budget for 2024 is around $2 billion, compared to NASA’s $27.2 billion.

Supply Chain Management in South Asia

The dependence on imported satellite components is a critical bottleneck for South Asia’s space sector. Key issues include:

1. Cost Implications: Importing high-value components like solar panels and propulsion systems increases mission costs and timelines.
2. Geopolitical Risks: Trade restrictions and geopolitical tensions with supplier nations can disrupt supply chains.
3. Technological Gaps: Limited domestic expertise in manufacturing high-efficiency solar cells or radiation-hardened components delays progress.

The USA, by contrast, maintains a well-integrated supply chain with advanced domestic manufacturing capabilities and streamlined logistics for satellite production. This autonomy allows American companies to meet the growing demand for constellations like Starlink while maintaining cost and time efficiencies.

Figures and Numbers as of 2024

• Global Satellite Market: Valued at $60 billion, expected to grow at a CAGR of 6.5%.
• Satellite Solar Panel Imports in India: Over $150 million annually, with primary suppliers being the USA, Germany, and China.
• Private Space Investments in South Asia: Estimated at $250 million in 2024, significantly lower than the USA’s $8 billion in venture capital funding for space startups.
• Satellite Launch Share: South Asia accounts for less than 5% of global satellite launches, while the USA leads with over 60%.

Personal Thoughts on Bridging the Gap

To bridge the supply chain and technological gap in South Asia’s space industry, a multi-faceted approach is necessary. Uplifting local companies to manufacture 90% of satellite components domestically should be a strategic priority. By investing in next-generation space technologies such as advanced solar cells, propulsion systems, and AI-integrated satellite platforms, South Asia can reduce its dependency on imports while creating a robust ecosystem.

Government policies will play a pivotal role in this transformation. Space policies must incentivize private sector participation through tax benefits, subsidies, and simplified regulations. Agencies like ISRO should actively engage with startups and academic institutions to foster innovation and transfer technology. Furthermore, international collaborations should be pursued not just for procurement but for joint R&D initiatives.

Lastly, government and agency handholding during the initial phases of domestic manufacturing can accelerate growth. A commitment to funding R&D, establishing special economic zones for space technology, and fostering a skilled workforce will ensure that South Asia emerges as a competitive force in the global space industry. With concerted efforts, the region can transform from a user of space technology to a leader in developing it, enabling sustainable growth and strategic autonomy in space exploration.

Kunal Naik is a Spacecraft Mechanical and Systems Engineer with five years of professional experience working on international space projects. His interdisciplinary background, which spans engineering, technology, and business, provides him with a well-rounded perspective on the challenges and opportunities in the space sector.