India’s Remarkable Achievement in Space

India has recently accomplished a remarkable feat in space exploration, propelling itself into the league of advanced industrial nations. On August 23, the Chandrayaan-3 unmanned spacecraft successfully touched down near the moon’s south pole, creating a momentous occasion for the nation. In a gathering at the Indian Space Research Organization (ISRO), Prime Minister Narendra Modi expressed his belief that science and technology serve as the pillars for a prosperous future.

However, despite the jubilation surrounding this achievement, it is important to substantiate its impact and significance. While Chandrayaan-3’s unprecedented landing on challenging and crater-filled terrain indeed evokes memories of the iconic Apollo missions, there is still much to be proven.

The successful landing on the moon resonated deeply with the people of India, a diverse nation of 1.4 billion. It carried their collective hopes and aspirations, particularly considering that Russia’s competing mission had tragically crashed just days earlier. Ravi Chaturvedi, co-founder of Tufts University’s Digital Planet program and an Indian native, aptly expressed this sentiment by stating that what landed on the lunar surface was not just a spacecraft, but also the dreams of millions.

A key point of pride for India is that all crucial systems for Chandrayaan-3 were domestically built. ISRO assembled an exceptional team of Indian conglomerates for this mission. Companies like Godrej Aerospace contributed the Vikas engine, while Tata Consulting Engineers provided support with the propellant system. Notably, the official cost of this endeavor was a mere $75 million, an amount pointed out by PM Modi to be less than the price of a Hollywood film about space exploration.

India’s progress in space exploration highlights its commitment to scientific advancement and technological innovation. This achievement serves as a testament to the nation’s prowess, placing it among the elite players in the global space race. As India continues to push the boundaries of what is possible, it sets a shining example for other nations to strive for breakthroughs in the realm of space exploration.

India’s Space Start-ups and Roadblocks to Industrial Power

The potential for space contracting has caused a surge in the stock prices of several engineering start-ups in India. Zen Technologies (ticker: ZENTEC.India), PTC Industries (PTCIL.India), and Centum Electronics (CENTUM.India) are among the companies that have experienced significant growth this year. According to Benjamin Silverstein, a space research analyst at the Carnegie Endowment for International Peace, India is home to a large number of space start-ups, many of which have tangible products.

However, despite this promising growth in the space sector, India still faces major obstacles on its path to becoming a top industrial power. Prime Minister Modi introduced the “Make in India” program in 2014 to boost manufacturing, but its impact has been limited. Manufacturing currently accounts for only about 18% of the country’s gross domestic product (GDP), as reported by S&P Global. In comparison, China’s manufacturing sector represents 28% of its GDP.

Modi’s ambitious target is to increase the share of manufacturing to 25% by 2025. However, there are significant policy-related challenges hindering the achievement of this goal. The Indian government’s inclination towards imposing import tariffs, some of which affect the inputs necessary for increasing exports, serves as a major roadblock. In a recent report, the United States Trade Representative criticized the Indian government for consistently implementing tariff and non-tariff barriers to protect domestic suppliers across various sectors.

Despite the successes of India’s space start-ups, it is clear that addressing these policy-related obstacles is crucial for India to fulfill its industrial aspirations and enhance its global manufacturing competitiveness.

India’s Transportation Infrastructure: A Key Hurdle to Overcome

India’s ambition to become a leading global manufacturing destination faces significant obstacles, one of which is a lag in transport infrastructure. Currently, Indian ports are unable to accommodate the largest container ships, necessitating the transshipment of freight through Singapore or Hong Kong. To truly establish itself as the preferred global manufacturing hub, India must undergo substantial upgrades in its rail, port, and freight corridors.

S&P researchers emphasize the crucial role these improvements play in realizing India’s manufacturing potential. Mere wishful thinking will not suffice; concrete actions are required to address this pressing issue.