The Indian space economy is projected to hit a sizeable USD 13 billion by 2025. This bold prediction is detailed in a joint report prepared by EY (Ernst and Young) and the Indian Space Association (ISpA). India’s space industry has been gaining ground globally, buoyed by supportive government policies, enhanced private participation, and adoption of advanced technologies.
Key Takeaways from the Report
The report offers valuable insights into the various segments of the Indian space economy. According to the study, the space-launch sector will witness a Compound Annual Growth Rate (CAGR) of 13%, boosted by private participation, cutting-edge technology adoption and cost-effective launch services. The satellite services and application segment holds the lion’s share of the space economy, poised to make up 36% of the space ecosystem by 2025. The opportunity for satellite manufacturing in India is anticipated to escalate to USD 3.2 billion by 2025 from USD 2.1 billion in 2020. This makes satellite manufacturing the second fastest-growing segment in the Indian space economy.
About the Indian Space Association (ISpA)
Launched in 2021, ISpA serves as the key industry association of space and satellite companies in India. ISpA represents leading domestic and global corporations that possess advanced capabilities in space and satellite technologies. The primary role of ISpA is to advocate policies and liaise with all stakeholders in the Indian space domain, including Government and its Agencies. The organization is aimed at making India self-reliant, technologically advanced, and a leading player in the space domain.
Need for Reforms in the Space Sector
To scale up the space sector in India, it is critical that private players enter the market. Currently, the Indian Space Research Organisation (ISRO) is centrally funded with its budget used mainly for building rockets and satellites. By sharing knowledge and technology, like manufacturing rockets and satellites, ISRO aims to encourage private players to be part of the space sector.
Private Sector Engagement in the Space Industry
The need for private sector engagement has always been there. This need has been primarily for manufacturing parts and sub-systems. However, there is a need for private players to also manufacture rockets and satellites. These players can bring the necessary innovation for developing space-based applications and services.
Initiatives Taken to Foster Growth in the Space Sector
Several initiatives have been taken to boost India’s space sector. IN-SPACE was introduced to provide a level playing field for private companies desiring to utilise Indian space infrastructure. It serves as a single-point interface between ISRO and any entity interested in engaging space-related activities or exploiting India’s space resources. Another initiative, NewSpace India Limited (NSIL), aims to leverage research and development undertaken by ISRO over the years for commercial purposes through Indian industry partners.
A Bright Future Awaits the Indian Space Economy
There is an urgent need for a new policy that ends ISRO’s monopoly of the space sector in India by opening up knowledge and technology sharing to all interested parties. With India boasting one of the best space programs in the world, the move to permit Foreign Direct Investment (FDI) in space will contribute immensely towards making India a major player in the global space economy. The introduction of the Indian Space Activities Bill can give greater clarity to private players on their role in the space sector.
Last Modified: February 18, 2024