India’s space push seen driving economy, attracting global investors

India’s space sector is set to become a core pillar of the country’s growth story, with its value projected to rise fivefold to between 40 and 45 billion dollars over the next decade, minister of state for space and atomic energy Jitendra Singh has said. He noted that the domestic space economy, which was languishing at modest levels a few years ago, has now grown to roughly 8–9 billion dollars, and could become a significant component of India’s overall GDP as reforms mature.

Singh credited the Narendra Modi-led government with taking “unorthodox” decisions, including opening up the space sector to private participation about six years ago, which he said triggered a “quantum leap” in activity in just five years. Industry estimates place India’s current space economy at around 8.5 billion dollars, or about 2% of the global space market, with the potential to reach close to 100 billion dollars by 2040 as policy support, private capital and technology converge.

A series of reforms since 2020 have underpinned this growth, including liberalised norms allowing 100% foreign direct investment through the automatic route for manufacturing satellite components, ground segments and user equipment. The government also unveiled broader space reforms that allowed non-government entities to undertake end-to-end space activities and sought to provide regulatory certainty for building a competitive ecosystem.

The Cabinet’s approval of the Indian Space Policy 2023 further institutionalised private sector participation, clarifying roles for public and private players and aiming to expand India’s share in the global space economy. In parallel, the creation of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) in June 2020 as a single-window, autonomous body under the Department of Space has been key to promoting, authorising and enabling private space activities.

Singh said the sector has witnessed an explosion in entrepreneurial interest, with the number of space startups rising from fewer than 10 earlier to nearly 500 today, with one or two on the cusp of achieving unicorn status. The department is also pushing advanced research and development to strengthen national space programmes and support innovation-led growth in the domain.

The minister underlined that space technology is now deeply intertwined with other sectors, supporting the government’s Viksit Bharat 2047 vision of a developed India. He pointed to initiatives such as Gati Shakti for infrastructure planning, Svamitva for land mapping and satellite-based disaster management, noting that close to 70% of space applications are now geared towards improving ease of living.

Singh added that India is rapidly emerging as a preferred global hub for space engagement and investment, as reforms have created an ecosystem where “talent, technology and investment can converge.” He said that while scientific capability always existed, the real turning point came when policymakers opened the doors for broader participation, helping the country attract international partners and capital into the space value chain.

Beyond space, Singh highlighted quantum technologies as another strategic frontier where India aims to secure a leadership role, particularly within the Global South. The National Quantum Mission, approved by the Cabinet in April 2023 with an outlay of ₹6,003.65 crore for 2023–24 to 2030–31, is intended to seed and scale scientific and industrial R&D in quantum technologies and applications, reinforcing India’s positioning in next-generation technologies.
BCS Bureau