The Indian space economy will need an overall investment of $22 billion in the next 10 years to reach its potential of $44 billion in revenue by 2033, making up 8 per cent of the global share, according to the Indian National Space Promotion and Authorization Centre (IN-SPACe), an autonomous agency in the Department of Space (DOS), Department of Science, Government of India.
Currently, India’s space economy stands at approximately $8.4 billion, with a projected five-fold increase by 2033. In contrast, the global space economy is currently valued at $440 billion, with an estimated growth to $1 trillion by 2040.
Breaking down this opportunity, it is anticipated that $33 billion in revenue will come from domestic sources, while $11 billion will be sourced from imports.
The existing $8.4 billion space economy in India primarily consists of three main segments: $7 billion in the downstream segment, $1.3 billion in the upstream segment, and $.1 billion from midstream. “Of the $44 billion, we expect $32 billion to come from downstream, $2.5 from mainstream, and $9.4 billion from upstream, with CAGR growth capped at 16 per cent,” noted Pawan Goenka, Chairman of IN-SPACe.
Upstream consists of launch systems and vehicles and satellite manufacturing; midstream consists of ground, segment systems, and network equipment; and downstream includes data and satellite services (broadcast, interactive communication, navigation, EO data, and data products). User equipment (GNSS devices and chipsets, TV dishes, radio receivers)
Investments
With regards to the investment, the chairman highlighted that the $22 billion investment encompasses contributions from both the government and the private sector. “This year we have definitely crossed an investment threshold of $110 million,” he added.
Additionally, to foster a start-up culture in the country, IN-SPACe has initiated several measures, including the Seed Fund scheme, designed to provide initial financial support to Indian space start-ups. “The initial focus of this scheme is on the agriculture sector, with two selected companies receiving seed funding of ₹1 crore,” said Goenka.
Further, it intends to introduce similar schemes annually in various sectors, with an allocation of approximately ₹15–20 crore.
In addition to financial assistance, the Seed Fund Scheme offers mentorship, training, and networking opportunities. Periodically, IN-SPACe will announce sector-specific opportunities under this scheme. The first opportunity, targeting the agriculture sector, was announced in April 2023.
Decadal vision
Goenka unveiled the decadal vision and strategy for the Indian Space Economy, outlining eight key focus areas that emphasise the creation of demand, local manufacturing capabilities, infrastructure development, and the establishment of a robust regulatory framework to encourage and facilitate the participation of non-governmental entities (NGEs) in the space sector during its first conference held in Bengaluru.
The autonomous agency is focussing on the commercialisation of the space economy and has been actively working towards it.
“We are establishing a design lab at its Ahmedabad Technical Centre headquarters and working on setting up manufacturing hubs for space in collaboration with two state governments,” the chairman said. IN-SPACe says that it will soon be signing Memoranda of Understanding (MOUs) to establish these hubs, further promoting the growth and development of the Indian space sector.
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