Frugal Innovation: How Emerging Space Markets are Redefining the Space Race
.
By Sandya Bhat Asnotikar (Pursuing a Doctor of Business Administration (DBA) in Digital Leadership from Golden Gate University, San Francisco, in collaboration with upGrad)
The New Space Race Isn’t About Who Spends the Most—It’s About Who Innovates the Smartest!
The space industry has long been dominated by billion-dollar budgets, government-backed agencies, and elite space programs. But what if success in space exploration wasn’t about who spends the most—but about who innovates the smartest?
India has challenged this narrative. With Chandrayaan-3’s historic Moon landing, the upcoming Gaganyaan human spaceflight, and its role as a global launch hub, India is proving that space leadership is no longer exclusive to the wealthiest nations. The secret? Frugal innovation—achieving high-impact results with limited resources.
At a time when the U.S. and China are investing billions in space programs, India’s low-cost, high-efficiency model is redefining what’s possible in space exploration. The NASA-ISRO collaboration on the NISAR mission is one of the most advanced Earth observation satellites further marks India’s role as a key player in global space partnerships.
But is frugal innovation enough to sustain this momentum? And what lessons can other emerging markets learn from India's model?
The Rise of Frugal Innovation in Space
The Mars Orbiter Mission (Mangalyaan), launched in 2013 for just $74 million, was a fraction of NASA’s $671 million Maven Mars mission. The Chandrayaan-3 Moon landing in 2023, which made India the first nation to reach the Moon’s south pole, cost just $75 million less than Hollywood’s Interstellar. This approach is shattering cost barriers and opening doors for emerging markets that once saw space as out of reach.
What drives this cost-effective success?
- Simplicity in design: ISRO prioritizes essential functionalities over expensive, complex systems.
- Indigenous manufacturing: Local supply chains and engineering expertise reduce costs without compromising quality.
- Public-private collaboration: ISRO partners with startups and private firms, leveraging their innovation to lower costs and improve efficiency.
India’s Private Space Boom: Startups Leading the Next Phase
While ISRO has led India's space journey, India’s space sector startups are leveraging frugal innovation to significantly cut costs - a strategy not fully adopted by Western players yet.
The following table gives a bird’s eye view focusing on frugal innovation of Indian space private players:
| Company | Main Focus | Key Frugal Innovation | Cost Efficiency Compared to Global Players |
| Skyroot Aerospace | Cost-effective rockets & launch vehicles | Reusable 3D-printed rocket engines | 50% lower launch costs vs. SpaceX |
| Agnikul Cosmos | On-demand small satellite launches | Customized SLVs & 3D- printed components | Flexible, pay-as- you-go pricing model |
| Bellatrix Aerospace | Low-cost, green propulsion systems | Eco-friendly thrusters, fuel savings< | 30% cost savings on satellite fuel |
| Dhruva Space | Affordable satellite manufacturing | Modular satellite kits & bundled deployments | Reduces satellite costs for startups |
Meanwhile, global investors are betting big on India’s private space sector, with funding rounds from Google, GIC, and Indian venture capital firms fueling this new wave of innovation. As international partnerships grow, India's low-cost, high-quality space solutions are making it the preferred destination for global satellite launches.
Frugal Innovation for the Bottom of the Pyramid (BoP)
India’s frugal space solutions aren’t just driving interplanetary ambitions but are solving real- world challenges at scale. Beyond deep-space missions, India’s space innovations are directly impacting millions of lives on Earth, particularly those at the Bottom of the Pyramid (BoP).
- Precision Agriculture: AI-driven satellite imagery helps farmers predict weather patterns, monitor soil health, and optimize crop yields crucial for a country where 50% of the workforce relies on agriculture.
- Disaster Management: Earth observation satellites aid in early flood and cyclone detection, helping mitigate climate-related risks in vulnerable regions.
- Affordable Connectivity: Satellite-based internet projects are bridging India’s rural- urban digital divide, enabling remote education, healthcare, and financial inclusion.
Challenges on the Horizon
While India’s frugal innovation model is a game-changer, several challenges must be addressed. By strengthening policy frameworks, fostering public-private partnerships, and ensuring sustainable funding, India can secure its position as a global space leader.
- Funding Gaps: Unlike the U.S. or China, India’s private investment in space remains limited. A stronger venture capital ecosystem is needed for startups to scale.
- Regulatory Barriers: India’s space policies are evolving, but clearer guidelines could attract more foreign investment and private sector growth.
- Scaling Manufacturing: To stay globally competitive, India must expand its satellite and rocket manufacturing capabilities beyond experimental missions.
Frugal Innovation Beyond Space: A National Mindset
Some of the well-known frugal innovations which has contributed to growth of Indian economy are from various sectors:
- Healthcare: Dr. Devi Shetty's Narayana Hrudayalaya model revolutionized heart surgery, making it accessible at a fraction of the global cost without compromising quality.
- Pharmaceuticals: Government-backed initiatives are crowdsourcing drug discovery, enabling affordable healthcare solutions for millions.
- Telecom: Bharti Airtel disrupted the telecom industry by lowering mobile phone costs, expanding digital inclusion to even the most remote areas.
Conclusion
India’s cost-effective space strategies are gaining global recognition, establishing it as a key player in the space economy. Having launched over 380 satellites for 34 countries, India's PSLV rockets have made it a preferred global launch provider. The NASA-ISRO NISAR Mission, designed to revolutionize climate monitoring and disaster response, and the Gaganyaan human spaceflight program, set to make India the fourth nation to send astronauts into space, further underscore India's growing influence.
As the space industry shifts focus from big budgets to smart innovation, India’s frugal yet powerful approach is shaping global policy, sustainability, and accessibility in space technology. This model breaks down high-cost barriers, offering a roadmap for emerging markets looking to enter the space sector. With continued investment, strategic policymaking, and growing public-private collaborations, India is poised not just to participate, but to lead the future of the global space economy.
The next space race won’t be won by the biggest spenders—but by the smartest innovators.
Author’s Bio:
Sandya Bhat Asnotikar is a doctoral researcher (DBA) at Golden Gate University (GGU), an aerospace industry expert, and a digital leader in cloud technology with over 17 years of experience, currently working at SAP. As President of the Karnataka Aerospace Council (WICCI), she strengthens industry-tech collaborations, drives innovation, and actively advocates for skill development and policy enhancements. She is also the founder of the AeroMinds newsletter, which explores space technology and leadership.
Disclaimer: No Business Standard Journalist was involved in creation of this content
Topics : space race
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Mar 19 2025 | 1:24 PM IST
