Despite its reputation, India’s per-unit space launch cost highest: study

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 PSLV (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.

The findings challenge the narrative surrounding India's space program, historically celebrated for its frugal engineering—exemplified by the low cost of the Mangalyaan (Mars Orbiter Mission). However, it is crucial to distinguish between overall mission cost and per-unit launch cost. While ISRO 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 LVM3 (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 ISRO to operationalize next-generation, high-capacity, and reusable launch vehicles to remain competitive.

The study underscores the importance of the recent space sector reforms in India. The establishment of IN-SPACe (Indian National Space Promotion and Authorization Centre) and NewSpace India Limited (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 SSLV (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.