In Short:
India has invested nearly $13 billion in its space sector over the last decade, contributing $60 billion to its GDP and creating 4.7 million jobs. The sector has seen rapid growth in start-ups and aims to launch the Bharatiya Antariksha Station by 2035 and land astronauts on the Moon by 2040. Continued government support is crucial for the sector’s future growth and global competitiveness.
India has made significant investments in its space sector, contributing nearly $13 billion over the past decade. According to a report by the global consulting firm Novaspace, this investment has resulted in an impressive $60 billion boost to the country’s GDP, factoring in direct, indirect, and induced benefits. The report, titled ‘The Socio-Economic Impact of the Indian Space Programme,’ was unveiled by Jitendra Singh, the Union Minister of State for Space, and indicates that India ranks as the eighth-largest space nation globally in terms of funding, with a notable increase in startups within the sector.
Steve Bochinger, affiliate executive adviser at Novaspace, highlighted that the Indian space sector has generated approximately 4.7 million jobs, directly employing around 96,000 individuals across both public and private domains. Furthermore, revenues in the space sector have risen significantly, jumping from $3.8 billion in 2014 to $6.3 billion in 2023.
Bochinger emphasized the substantial economic ripple effect, stating, “Every dollar generated by the space economy in India translates into $2.54 of indirect and induced benefit,” a phenomenon he referred to as the multiplier effect.
Future Plans
Looking ahead, Minister Singh announced ambitious goals for India’s space endeavors, which include commissioning the Bharatiya Antariksha Station (BAS) by 2035 and landing Indian astronauts on the Moon by 2040. He expressed optimism that the upcoming human spaceflight mission in Low Earth Orbit will serve as a crucial step towards expanding India’s scientific exploration aboard an indigenous space station, thereby setting the stage for further lunar missions.
Impact on Society
The Novaspace report also noted that the Indian Space Research Organisation (ISRO) provides daily assistance to approximately 800,000 fisherfolk and benefits around 1.4 billion citizens with satellite-based weather forecasting.
Support for Start-ups
Pawan Kumar Goenka, Chairman of the Indian National Space Promotion and Authorization Centre (INSPACe), stated that the organization has launched a seed fund scheme for startups, initiated technology transfer to the private sector, and established a design lab equipped with simulation software to aid emerging entrepreneurs in the space industry.
“We are encouraging the private sector to initiate an Earth observation constellation through public-private partnerships. Efforts are underway to leverage unused ITU filings for non-government entities,” Goenka mentioned, adding that Finance Minister Nirmala Sitharaman announced a ₹1,000 crore venture capital fund for space startups to bridge critical financing gaps and ensure sustainable growth.
Government Policies and Outlook
Subba Rao Pavuluri, President of the Satcom India Association, remarked that progressive government policies, including the India Space Policy and the establishment of New Space India Limited, have created a favorable environment for Indian private companies. He acknowledged existing challenges related to funding and infrastructure but maintained an optimistic outlook for the sector’s future.
Lt Gen A K Bhatt (retd), Director General of the Indian Space Association (ISpA), emphasized the importance of ongoing policy reforms, noting initiatives such as the comprehensive Space Policy and the liberalization of FDI regulations have provided essential momentum for the private industry. “It is crucial that policy reforms continue to address existing barriers, allowing the private space industry to take a more active role in enhancing India’s contributions to the global space economy,” he stated.
These collective efforts signal a commitment to fostering a vibrant and competitive space ecosystem, positioning India for continued leadership in the realm of space exploration.
