Indian space economy set to grow to $13b by 2025 finds report

11th October 2022
Indian space economy set to grow to $13b by 2025 finds report
From left: Lt. Gen. AK Bhatt, DG, ISpA; Jayant D Patil, Chairman, ISpA; Dr. Jitendra Singh, MoS, Ministry of Earth Sciences, Space, Science and Technology; S. Somnath, Secretary, DoS and Chairman ISRO; Suneel Kumar Niraniyan, DDG(Satellite) at the launch of the ISpA- EY report.

New Delhi, October  11 2022: Marking its 1st Foundation Day, the Indian Space Association (ISpA), apex industry association of space and satellite companies in India has released a report titled “Developing the space ecosystem in India: focusing on inclusive growth” in collaboration with EY.
The report released on the sidelins of the Indian Space Conclave here  yesterday, brings forward the developing dynamics of the space ecosystem in India and covers the outlook of the space economy in India and its potential to accelerate the socio-economic development in the country.
Said  ISpA Chairman Jayant D Patil “ISpA has made significant progress in its first year regarding policy consultations, deliberations with industry leaders, since the launch by Hon’ble Prime Minister. We appreciate the support from various ministries and institutions in our discussions as well as the participation of our members throughout the year and we are happy to announce that ISpA is a 50-member strong association, starting from just 7 members a year back in just a matter of one year. This is a testimony of our efforts being channelized in the right direction. With the rapidly growing space ecosystem, India is all prepared to grow to US$13b by 2025 at a CAGR of 6%. We believe as India looks forward to the New Space Policy, the private industry’s role is set to create a revolution in the current value chain of the Indian space economy.”
Added Dr Jitendra Singh, Minister for Earth Sciences, Space, Science and Technology:  “I think the greatest credit to this entire exercise that has been accomplished in the space sector over the last one year is an extension of the last few yearsOn a global level, India has also emerged as a very strong player in the geospatial technology. I'm glad to know that ISpA has lived up to their role of reform implementation while articulating the industry opinion, industry stakes and also the industry participation.”
Indian Space Association (ISpA) in a year since its inception has played a vital all-encompassing role for the entire Space Domain especially in bringing together the private space industry. It has emphatically undertaken policy advocacy and engagement with stakeholders including TRAI, DoT, Ministry of Defence, IN-SPACe and others, to make India self-reliant, technologically advanced and a global leader in the space arena.
With established players to startups of the sector being ISpA members, it played a critical role in consultation on the proposed Space policy, which once implemented will give wings to the private space industry and fuel a new lease of growth in the Space Startup ecosystem. ISpA member companies like Astrome Technologies, Agnikul Cosmos, Pixxel and many others promise a huge potential, also as an example of collaboration ISpA member OneWeb’s 36 satellites will be launched by ISRO in October.
 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 2nd 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