Indian space economy set to grow USD 13 billion by 2025: Report

The realisation of indigenous technology, infrastructure, systems, and the systematic deployment of services have helped India create a well-respected space programme. India contributed roughly 2.6% of the world's space economy in 2020, totaling $9.6 billion in US dollars, or 0.5% of the nation's GDP.

In celebration of its first foundation day, the Indian Space Association (ISpA), the country's leading trade group for satellite and space companies, which was established by Hon. Prime Minister Shri Narendra Modi last year, today unveiled a sector report in partnership with EY titled "Developing the space ecosystem in India: focusing on inclusive growth."

The paper highlights the evolving dynamics of India's space ecosystem and discusses the future for the country's space economy, as well as its potential to hasten the socioeconomic growth of the nation. Industry leaders including Dr. Jitendra Singh, the Hon. MoS for the Prime Minister's Office's Ministry of Earth Sciences, Space, Science, and Technology, as well as Shri S. Somnath, the DoS Secretary and Chairman of ISRO, attended the event.

Industry experts participated in the "Indian Space Conclave" at the Sir Manekshaw Center in New Delhi to discuss topics such Atmanirbhar Bharat in Defense Space, realising India's $5T GDP growth, and making space accessible to the general public. Following the conclave, 24 exhibitors from top space startups and academic institutions will hold a 2-day exhibition to display their goods and services.

Highlights of ISpA-EY Report - Developing the space ecosystem in India: focusing on inclusive growth

• India has a well-developed space program, boosted by the realization of indigenous technology, facilities, systems, and rollout of services in a systematic manner. India accounted for approximately 2.6% of the global space economy in 2020 amounting to US$9.6 billion in 2020, which was 0.5% of the GDP in the country
• India space segments
  • Satellite services and application segment would form the largest share of the space economy accounting for 36% of the space economy by 2025
  • The space launch segment is to grow the fastest by 2025 at a CAGR of 13% spurred by growing private participation, latest technology adoption and the low cost of launch services
  • Investment in space tech start-ups increased 196% y-o-y in 2021; there are more than 100 space tech start-ups in India
• Indian satellite manufacturing opportunity - in 2020 it was 2.1 US$B and is expected to reach 3.2US$B by 2025
  • For satellite manufacturing, “Make in India” initiative is expected to spur growth owing to increased demand for small satellites.
  • By 2025, satellite manufacturing segment will be the 2^nd fastest growing in the Indian space economy. Setting-up space parks across the country is likely to give a fillip to companies operating across the space value chain, especially manufacturing.
  • key to attracting global startups working in the space sector and help to incubate spacetech companies in India.
• Key considerations for creating an enabling space economy in India
  • A single window approval process through a nodal body focused on space economy shall aid and ease the process of having in place requisite authorizations to enhance ease of doing business
  • A comprehensive space policy covering upstream and downstream activities will help formulate vision and provide policy predictability to bolster investment climate
  • Introduce Production Linked Incentive (PLI) scheme for satellite manufacturing, like mobile handsets and telecom equipment
  • Promote independent launch solutions of Indian private companies for satellites and other spacecrafts
  • Facilitate access to cost effective capital for startups
  • Need for holistic skills development – competency of systems engineering, training on how to operate satellites skillfully, and technology associated with special alloy for launch vehicles