Economic analysis of India's space programme
S. CHANDRASHEKAR
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Path-breaking book on the economic aspects of India's space programme
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THE ECONOMICS OF INDIA'S SPACE PROGRAMME — An Exploratory Analysis: U. Sankar; Oxford University Press, YMCA Library Building, Jai Singh Road, New Delhi-110001.
Rs. 695.
The products and services provided by space systems range in scope from national security and strategic applications to everyday services like telecommunications, television and information of various kinds. This array of needs that space systems address and the way in which they complement and substitute similar products and services provided by non-space alternatives make the task of economic assessment of any space programme extremely difficult. Unlike the space programmes of many other countries, India's was and still is a civilian programme with the lofty ideal of using space technology for the socio-economic transformation of the country .
This developmental and socio-economic focus further complicates the process of an economic evaluation of the Indian space programme. Sankar's path-breaking book has gone about this difficult task in a very thorough and systematic way.
Services
The book addresses the major services provided by the Indian Space Programme in great detail. The services provided by the INSAT System — telecommunications, TV Broadcasting, Meteorology — as also The Remote sensing programme, the launch vehicle programme and the various spin-offs from the space programme are all covered under separate chapters. The value of information provided by remote sensing imagery is brought out through specific case studies that are extended to the national level.
The issues related to direct and indirect costs, assigning of infrastructure and common costs among different heads and the linkage of costs to the value of the services provided are dealt with elaborately and comprehensively. The costing principles adopted are explained in detail and the connection between the allocation of costs and the technical elements of the system are very well covered.
A wealth of valuable data on the Indian space programme has been compiled and put together in one place. In analysing costs, especially relative costs between Indian and foreign space systems, the book provides some very useful information on commercial space products and services available in today's globalising world. This is a bonus coming out of the economic appraisal that adds significant value to the contents.
Most of the products and services provided by the Indian space programme are public goods. Network externalities, the non-existence of efficient markets and institutional factors have to be taken into account while evaluating such programmes. Before embarking on his evaluation exercise , Sankar has clearly conceptualised the kinds of problems raised by the public good nature of the products and services provided by the Indian space programme. The result is a very lucid exposition of these issues and a clear justification for adopting a particular methodology for evaluating a particular product or service.
Justification
For many of us who were involved in the early days of the programme it is of course nice to see a clear economic justification for what was originally considered to be an illusion or a dream. The Sarabhai-Dhawan vision of utilising space for the socio-economic transformation of the country has indeed become a reality.
The INSAT and IRS systems provide valuable products and services that are a part of our day-to-day life. Our Launch Vehicle Programme has done well in spite of problems with the development of the cryogenic engine. Information on the weather, live telecasts of major happenings around the country, various information services related to resources have all become operational. Globally the Indian space industry compares well with that of the major space powers.
Future investment
If one had looked only at the economics of the space programme during its early days it would have been difficult to justify. There was always the argument that resources ploughed into the space programme could be better utilised in other areas. It was indeed an article of faith for the country to make this investment for the future. It is nice to know from Sankar's critical assessment that the returns from the space effort are significantly more than what has been invested in the programme. Dhawan, were he alive today, would have been particularly happy to know that this was indeed so. In his usual low-key manner, he would have said that Vikram would have been very happy to know that what he had visualised had become a reality .
Sankar's appraisal is neither eulogistic nor unnecessarily critical. By sticking to facts and data and allowing them to speak for the programme, he has brought rigour into the process of economic scrutiny. This is a work of scholarship that should be read by all people interested in the Indian space programme.
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