Indian space economy likely to touch Rs 4.22 lakh crore by 2030: Report

Indias space economy could reach an estimated Rs 422 lakh crore USD 44 billion by 2033 driven by policy changes increased participation from private companies and rising demand for spacebased services according to news agency IANSTo achieve this growth target over the next seven to eight years will require coordinated efforts among government agencies private industry startups investors academic institutions and strategic users the joint study by EY and the Confederation of Indian Industry CII saidThe study noted that Indian Space Policy 2023 reforms introduced through the Indian National Space Promotion and Authorization Centre INSPACe and the role of NewSpace India Ltd NSIL have laid the foundation for a transition from a governmentled space programme to a more industrydriven ecosystemCDR Gautam Nanda Partner for Aerospace Defence and Space at EY India said the sectors next stage of expansion would depend on developing stronger industrial capabilities bringing technologies to market reinforcing supply chains and converting satellitegenerated data into practical services for commercial public and strategic applicationsSix focus areasThe study outlined six key areas for the growth purposes that include expanding the use of spacebased applications across industries boosting domestic capabilities in manufacturing and launch services creating a stronger regulatory and funding framework using government procurement and demand to encourage commercial adoption advancing defence and strategic space capabilities and establishing India as a global space partner and an export centreMallavarapu Apparao Chairman of the CII National Committee on Space said Indias space sector has evolved from a scientific exploration programme into an innovationdriven economy supported by satelliteenabled services and applicationsIndiarsquos space industry spans upstream activities include satellite manufacturing launch vehicles propulsion and avionics The midstream sector covers ground infrastructure and satellite operations Downstream activities include Earth Observation EO satellite communications SATCOM navigation solutions and geospatial analyticsThe report also pointed to the growing role of downstream space applications in areas such as agriculture logistics disaster management infrastructure planning climate resilience and governance while also strengthening defence capabilities through secure communications and maritime domain awarenessIt further said generating greater economic value from Indias space sector will require wider adoption of satellite data stronger analytics capabilities skilled talent and interoperable digital platformsIndias space economy at presentIndias space economy has reached USD 9 billion and the space ecosystem has expanded rapidly with the number of registered space startups rising from one in 2014 to around 440 in 2026 till AugustPrivate investment in Indiarsquos space sector has surged nearly sixfold rising from USD 1005 million in 2021ndash22 to USD 6185 million by March 31 2026 Of this USD 187 million was recorded during 2026 aloneBy mid2026 113 authorisations had been granted to 52 nongovernment entities NGEs of which 18 are startups for satellite operations payload establishment and launch servicesIndia opened its space sector to private participation in 2020 enabling industry and startups to operate across satellites launch systems and space applications thus marking a major shift towards building a broader national space ecosystemIndias space policy opens doors for private participationThe Indian Space Policy 2023 further expanded private participation across the space value chainNSIL the commercial arm of ISRO provides launch satellite and spacebased services and transfers ISRO technologies to Indian industryIts revenue rose from Rs 32177 crore in FY 2021ndash22 to over Rs 3000 crore in FY 2024ndash25 reflecting the growing commercialisation of Indiarsquos space programmeINSPACe enables private space activities through a singlewindow mechanism It facilitated 71 ISRO technology transfers to industry and startups as of January 31 2026Moreover foreign direct investment FDI rules for the space sector were liberalised in February 2024 Up to 74 per cent FDI is permitted automatically for satellite manufacturing and operations 49 per cent for launch vehicles and spaceports and 100 per cent for satellite and groundsegment componentsTargeted financing is also strengthening Indiarsquos private space ecosystem The INSPACe Seed Fund Scheme supports earlystage space startups the Rs 1000 crore Venture Capital Fund provides growth capital and the Rs 500 crore Technology Adoption Fund enables wider deployment of space technologiesWith inputs from IANS