India’s space economy set for takeoff: with a ₹35,200 crore boost by 2033, what’s the flight path to 2047?

In 2020, the government allowed the private sector to reach for the stars, creating the Indian National Space Promotion and Authorisation Centre (IN-SPACe). Private companies swarmed into the sector.

Coming up: missions targeting other planets and celestial bodies, a Mars mission and lunar exploration. By 2030, India’s share of the global space economy will be four times what it was in 2021, going up to 8% by 2030 from 2% in 2021. By 2047, India’s share will be 15%.

Sam Hutchison, Co-founder of Space Exploration and Research Agency (SERA), is pitching for democratised space travel. He says a few nations have dominated space exploration. Over 80% of all astronauts have come from three countries—the US, Russia, and China.

Hutchison says things are changing. SERA is leveraging innovative space technologies such as Blue Origin’s New Shepard rocket to build a community-driven platform that allows anyone, anywhere, to participate in space exploration and research. “As India’s national manned space programme advances, we are excited to include India in our upcoming mission,” Hutchison says. SERA will help India launch a citizen astronaut.

Private sector innovations, start-ups in satellite technology, space tourism and other commercial ventures are expected to fuel India’s space economy. Invest India, the national investment promotion and facilitation agency, says India’s space economy was worth around `6,972 crore ($8.4 billion) in 2023 and accounted for 2-3% of the global space economy.

This will grow to around Rs 36,520 crore ($44 billion) by 2033, driven by private sector participation, government initiatives, and demand for satellite-based services.

Anil Prakash, Director General of SatCom Industry Association India (SIA-India), says private firms are moving the space sector into a commercialisation phase, just as SpaceX and Blue Origin did in the US.

“Innovations and investments from private sector firms are crucial to the commercialisation of space,” says Prakash. Consider the numbers: India has over 200 deep tech space start-ups, which secured $123.90 million in funding in 2023, amassing $380 million. In 2022, there was just one space start-up. Prakash highlights the trend towards miniaturisation and small satellites, for scientific and commercial use.

Money: Whence it came, where it went

Invest India says the Indian satellite launch market was valued at approximately Rs 11,026 crore in 2023 and is expected to expand to Rs 31,804 crore by 2030, with an anticipated CAGR of around 11.7%.

Prakash attributes this growth to cost-effective launch solutions from Isro.

Skyroot Aerospace, with its Vikram rockets, and Agnikul Cosmos, known for its 3D-printed Agnilet engines, are making a mark, as are Dhruva Space’s nanosatellites and Bellatrix’s propulsion systems.

Isro’s successful Chandrayaan-3 mission saw substantial contributions from private entities such as Ananth Technologies, Centum Electronics, and TCE.

Sanjay Kumar, CEO of Geospatial World, a platform that promotes geospatial technology, says users want more capable satellites for communication, Earth observation, and navigation. “For the world’s most populous country, grassroots impact is crucial,” says Kumar.

Policy & Regulation

National and international regulations are needed to oversee space activities and promote responsible use. Experts anticipate that such policies, supported by government funding, will advance space exploration and technology.

Finance Minister Nirmala Sitharaman announced a dedicated venture capital fund of Rs 1,000 crore in her FY25 Union Budget.

Anirudh A Damani, Managing Partner of Artha Venture Fund, says the fund is expected to attract substantial private investments, encourage entrepreneurial ventures, and advance India’s position. “The government’s venture capital fund will boost the space economy, while the R&D fund recognises that the space economy will be at the forefront of India’s ascent,” says Damani.

The Indian government reckons the geospatial sector will cross Rs 63,000 crore by 2025.

Prakash says that Isro’s NavIC, an autonomous satellite navigation system which provides accurate position information services to users in India and the surrounding region, could give GPS a run for its money.

Defence and Telecom

Geospatial intelligence and satellite-based surveillance have become important national security and strategic decision-making tools.

The GSAT-20 mission, led by Isro, will offer over 50 Gbps of bandwidth, enhancing high-speed satellite connectivity and addressing connectivity challenges in underserved regions, says Prakash.

The National Digital Communications Policy (NDCP) 2024 will set targets, such as connecting 650,000 villages using satellite technology.

Pawan Goenka, Chairman of IN-SPACe, says the strong demand for Earth observation data will benefit agriculture, energy, marine and road infrastructure.

IN-SPACe ropes in the private sector to work in a robust regulatory environment. Goenka’s agency sees growth in Ground Station as a Service (GSaas) and Satellite as a Service (SataaS).

“The trends we are witnessing today in India’s space sector are laying the groundwork for a transformative future,” the IN-SPACe Chairman says.

Srinath Ravichandran, Co-founder & CEO of AgniKul Cosmos, which shot to fame with a 3D-printed customisable launch vehicle, sees a future of end-to-end missions where the government is only a regulator. “By 2047, I see multiple global leaders from India,” says Ravichandran. 

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