India’s first privately developed launch vehicle, Vikram-1, placed several technology demonstration satellites in Low Earth orbit (LEO) on Saturday (July 18) morning. The textbook launch from Sriharikota by Hyderabad-based Skyroot Aerospace — the country’s first space unicorn — makes India only the third country in the world to have private launch capability after the US and China. It comes after the government opened up the space sector to private companies in 2020 and formalised the framework under the Indian Space Policy of 2023.The launch of the Vikram-1 — which can carry a payload of up to 350 kg to LEO — is significant for more than the fact that a private company has now entered the Indian aerospace ecosystem. Its true significance lies in the region of space it aims for — where more and more countries are now looking to reserve their place.So what does LEO mean? Why is it such a crucial region of space? What are other countries doing in that region, and where is India in that race? We explain. What is Low Earth orbit? Low Earth orbit, or LEO, is the zone immediately surrounding our planet. It is typically defined as the region between 160 km and 2,000 km above Earth’s surface. Satellites in LEO generally take between 90-120 minutes to circle the planet.The proximity to Earth makes this orbit preferable for satellites meant for communications as well as Earth observation and imaging because it helps reduce signal latency. This also makes LEO precious real estate.Why is Low Earth orbit important?“Today, orbital slots in the LEO work on a first-come-first served declaration. The only obligation a new entrant has is to not interfere with the previous occupants. This essentially makes it a literal gold rush.” said Ashwin Prasad Rao, Staff Research Analyst at the Takshashila Institution’s Outer Space programme, in a conversation with The Indian Express.Story continues below this adIndeed, the International Telecommunication Union (ITU), the UN agency for information and communication technologies, simply manages radio frequencies and prevents harmful interference between two or more satellites. “The hurdle is that there is no way of distribution in the LEO — unlike geostationary orbit, the satellite is not tethered by our geographic boundaries and moves around constantly circling the Earth many times a day, complicating equitable benefit-sharing,” Rao said. Also Read | China lands a reusable rocket for the first time: Why this matters for the space raceUnder the 1967 Outer Space Treaty no nation or corporation can legally claim ownership over an orbit. “What states are actually competing for is access to preferred orbital shells and advantageous radio-frequency slots managed by the ITU,” Khyati Singh, Research Analyst at the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA) told The Indian Express.An “orbital shell” is a layer of satellites at the same altitude and orbital inclination. Altitude is how high the satellite orbits above Earth’s surface and inclination is the angle of the satellite’s orbit relative to the equator.Story continues below this adOnce a specific orbital shell is occupied, subsequent parties are expected to coordinate around the incumbents or migrate to clearer pastures. A simulation of the full network of Starlink satellites when their first 12,000 satellites are up. SpaceX/StarlinkThis is why this framework incentivises speculative “squatting”, leading to countries designing and deploying satellite “megaconstellations” to encircle as much space as possible — like China’s Guowang and Qianfan satellites. “Projects such as Chinese megaconstellations are as much an instrument of claiming LEO real estate as they are focused on development. I would equate them to digging trenches in orbit; to defend it simply requires you to be able to maintain your existence,” Rao said. “SpaceX has upwards of 10,000 satellites and intends to launch tens of thousands more. It has also filed a claim for a million more satellites. While the short term viability of this ambition is an unanswered question, the intentionality is clear.” A promising start for India in the LEO race….Vikram-1’s success represents a massive leap for Indian private aerospace capability. It ensures New Delhi has assured access for launching small satellites, which are currently the most “underserved segment of the market”, Singh said.Story continues below this adWhile much has been made of China’s state-backed achievements — like the Long March 10 rocket — Singh said a more appropriate comparison for what India is doing today would be Chinese private space companies such as LandSpace and Space Pioneer that are developing medium-lift reusable vehicles. India does not have a reusable launch vehicle yet. “India is further behind in the market, but the Vikram-1’s launch reduces the gap,” Singh said.Also Read | Behind ISRO rocket’s second straight failure is a third-stage problemThe true strategic value of this private launch ecosystem lies in creating sovereign “surge capacity”. “This grants India the ability to rapidly rebuild or increase the number of intelligence, surveillance, and reconnaissance (ISR) satellites on demand, without relying on ISRO, which is vital in an increasingly contested Indo-Pacific region,” she said.Story continues below this adSecuring this orbital access directly feeds into national security. “It is a huge information warfare tool. Starlink was so active during the Iran War in providing access,” Rao said.But he cautioned: “This current model of overreliance on a few external providers increases the risk of security concerns and could undermine our authority.”….but a long way to go stillIndia, however, is still far behind in the LEO race. To counter this vulnerability, India needs to dramatically ramp up its launch frequency. This, however, faces major structural bottlenecks.“India is a milestone space power that is lacking in scale. We are smaller in our operating capacity and launch frequency by most metrics,” Rao said.Story continues below this ad“Two of the biggest roadblocks right now are the lack of scale that the sector is going through. The other is ISRO’s elongated timelines for India’s own reusable rocket which is one of the most critical components in ensuring frequent launches into the LEO.”ISRO’s partially reusable Next Generation Launch Vehicle (NGLV) is currently projected to be operational only in the mid-2030s. This extended timeline makes the immediate success of private expendable rockets like Vikram-1 — and forthcoming reusable booster attempts by firms like Agnikul Cosmos — vital in bridging the gap.Building this private ecosystem requires immense capital. While the government recently introduced a Rs 1,000-crore venture capital fund to support early-stage space startups, an increase in direct procurement volume is the need of the hour. “Long gestation periods mean that government contracts are needed to scale up the industry and so that nascent companies can survive their first few years while displaying solid demand to their investors. That is still missing in India,” Rao said.Story continues below this adAs orbital congestion worsens and regulatory loopholes are exploited by incumbent superpowers, the window for emerging space nations to secure their assets closes rapidly.“In a few years, LEO congestion will begin to command attention as an international crisis,” Rao concludes. “When the world bands together, it is vital India has a strong physical presence up there to help set the way forward.”