Space sector
Space sector
Space sector
From the humble beginnings of transporting rocket parts on bullock carts to the proud
achievement of launching a record number of satellites in a single mission, India has
proven itself as a trailblazer in space exploration.
Until recently, India’s space sector could broadly but in no way exclusively be divided
into two major domains: commercial and research. The Mars Orbiter Mission (MOM),
which made India the fourth nation to reach Mars, and the Chandrayan-3 Mission to
soft launch on the south pole of the lunar surface, are purely research initiatives for
space exploration. On the other hand, launching foreign satellites for communication,
navigation, and resource survey/management are commercial space activities.
Space Technology & Economy in India
The Indian Space Research Organisation (ISRO), formed on August 15, 1969, is the
country’s official space agency. Its mission is to harness, sustain, and augment
space technology for national development while pursuing space science
research and planetary exploration. It has led and defined the nation’s space
industry and economy with 124 spacecraft missions, 432 foreign satellite launches, 98
launch missions, and much more. The Bengaluru-headquartered organisation is gearing
up for Gaganyaan, India’s first manned mission to space. Several Non-Government
Entities (NGEs) aid ISRO as vendors and/or suppliers.
A report by the World Economic Forum and McKinsey estimates the size of the global
space industry to be $630 Bn in 2023. It is expected to grow 9% per annum and reach
$1.8 Tn by 2035. The private sector plays a defining role in driving innovation and
access through large-scale investments, while non-space private sector partnerships
with space players continue to expand.
In a landmark effort to engage and promote private entities in the space sector, the
Government of India launched the Indian Space Policy 2023. There are 189 DPIIT-
recognised space technology startups in India, and the space startups have garnered
investment worth $124.7 Mn during March-December 2023. The policy enables NGEs
to engage end-to-end in all domains of the space sector, making startups a lucrative
investment option for investors. Alphabet Inc. became one of the first to capitalise on
the lucrative potential with an investment of $36 Mn in a Bengaluru-based satellite
imaging startup called Pixxel. As the space sector flourishes with emerging startups,
established NGEs like Dhruva Space, SatSure, Skyroot, and more are also expanding
the remit of their operations and research under the policy.
NGEs access to Space
NGEs can undertake end-to-end activities in the space sector through the establishment
and operation of space objects, ground-based assets, and related services. They can
own, procure, or lease satellites for communications, remote sensing, navigation, etc.,
both within and outside the Indian air space. The data from said satellites can be
disseminated in India or abroad. Moreover, they can also design, craft, and operate
launch vehicles for space and the launch infrastructure.
Furthermore, NGEs can also be tasked by security agencies to create, procure, and
operate tailor-made technologies. In short, NGEs and the private sector now have the
entire spectrum of the space economy accessible to them.
India’s space economy, valued at $8.4 Bn in 2023, currently accounts for 2-3% of the
global space economy. But it is estimated to grow to $44 Bn by 2033. The private sector
can play a critical role in realising this.
Government Initiatives Towards Space Liberalisation
While the potential is limitless, much of the success of India’s space economy shall
depend on government support and guidance as space tech entrepreneurs take their
initial steps of private participation in the space sector.
To facilitate participation from the private sector, the Department of Space (DoS)
established the Indian National Space Promotion and Authorisation Centre (IN-
SPACe). Though funded by the DoS, IN-SPACe is an autonomous, single-window,
nodal agency for all space sector activities of NGEs. It serves as an authorisation and
clearance agency for space launches, provides infrastructure support for launch pads,
monitors and facilitates the procurement and trade of satellites, enables the use of DoS
facilities, and more. IN-SPACe also offers technical expertise and assistance to NGEs
and handholds them through the process by sharing technologies, best practices, and
products.
Meanwhile, NewSpace India Limited (NSIL), serving as the commercial arm of ISRO
under DoS, helps NGEs commercialise their space technologies and platforms. It
facilitates manufacturing, leasing, procuring, and trading space components,
technologies, and other assets for global markets. It also facilitates space services
offered by ISRO and now private companies and consortiums to international and global
agencies.
Regulatory Reforms
While the DoS has always worked closely with the Ministry of External Affairs to
facilitate and enhance cooperation and coordination in global space governance and
initiatives, the Government of India seeks to provide advocacy and advisory support to
the private players in the space sector. The Indian Space Association (ISpA) was
launched in October 2021 as the single voice of the private space industry. It acts as a
bridge between the government and the private industry and is completely independent
of the government’s regulatory purview. The single-window agency, better described as
an association or community, offers guidance and facilitates business opportunities for
startups in the space sector.
In a more recent and direct reform, an amendment to the FDI policy allows up to
100% foreign direct investment in manufacturing and procuring satellite systems. The
satellite sub-sector of the space industry has been distinguished into three different
segments with defined foreign investment ceilings.
Launch vehicles and their associated products/services can have up to 49% FDI
Activities like operation, data products, and ground and user segments can receive
up to 74% FDI
India’s space sector has always promoted domestic manufacturing and innovation.
These principles have held the nation’s space economy in good stead, with the NSIL
reporting an annual turnover of INR 28.42 Cr in FY 22-23 alone. The space economy is
on a sharp upward trajectory with the influx of space-tech startups and other NGEs. The
IN-SPACe has already signed 51 MoUs with NGEs to actualise and support the
manufacture of launch vehicles and satellites.
Other notable successes include the commercial launches of LVM3 & PSLV and the
successful launch of Aditya-L1 aboard PSLV C57 to observe the Sun, cementing India’s
place in the global space industry for research and commerce.
Benefits & Applications of Space Technology
The space industry has a crucial role in implementing innovative solutions in several
sectors, such as telecommunication, healthcare, agriculture, defence, and others. As
the 2nd largest telecommunication industry in the world, India boasts a staggering 1.17
Bn subscribers. But India’s space technology isn’t solely focused on
telecommunications. Satellites and space tech in India also derive and apply space data
to medicine, education, and disaster management.
Launched in 2001, the ISRO Telemedicine pilot project integrated two Apollo
hospitals, one in Chennai, Tamil Nadu, and one in the rural village of Aragonda in
Andhra Pradesh. The integration enabled the rural hospital's technical support and
monitoring facilities to optimise their cardiology, radiology, and pathology departments.
EDUSAT, India’s first thematic satellite, was launched exclusively to deliver interactive
education via web-based instructions, one-way TV broadcasts, and video conferencing
to enhance effective curriculum-based learning, teacher training, access to quality
resources & more. Since its pilot in 2004, EDUSAT has had more than 300 education
terminals nationwide.
India, as a member of the COSPAS-SARSAT programme, is part of the international
coalition that provides search and rescue assistance, distress alerts, and position
location data and services through its Low Earth Orbit Search And Rescue
(LEOSAR) satellite system.
Moreover, the National Remote Sensing Centre (NRSC), with various data centres
and agencies under its aegis, is actively engaged in both monitoring natural disasters
and offering aid and support to victims and survivors.
Indian satellites also have remote sensing applications to monitor and enhance
agriculture, sustainable land use, and conservation of non-renewable resources. They
also serve Earth observational applications, data, and research that ISRO under the
DoS and the MEA conscientiously draw on to guide growth, sustainability, and
exploration guidelines.
Conclusion
India's space sector is at a pivotal juncture. With a rich history of innovation — even at a
cost less than Hollywood movies — a booming private sector and a supportive
regulatory environment, the nation is poised for a significant leap forward.
By harnessing the collective potential of ISRO, NSIL, IN-SPACe, and its thriving startup
ecosystem, India can not only become a major player in the global space economy but
also unlock transformative applications for its citizens and the world. The final frontier
beckons and India appears well-equipped to answer its call.
India’s Space Sector Embraces a Transformative Era
The Indian Space Congress 2024 began with an exciting inaugural session, setting the
tone on India’s growing prominence in the global space landscape. Dr Subba Rao,
President of SIA-India, highlighted the ambition for India to become a central player
in the global space ecosystem. He said, “The Indian ecosystem is going to be integrated
into the global supply chain, to bring the benefit of space to all. We aim to make India
the hub of global satellite manufacturing, forging way ahead to a Viksit Bharat by 2047.
This vision aligns with a broader push to use space technology for development across
The evolution of the Satellite industry has been very incremental in India. A multi-
orbit satellite strategy uses a network of satellites in different orbits to provide a range
of solutions for different applications. This strategy aims to match the right
Deepk Mathur, Executive Vice President, SES Satellites emphasized the need for both
in the last 2 years outweighs the 28 years of development prior. There needs to be
space based connectivity to bridge digital divide, enable future mobility, extend cloud
to edge, fast track earth observation data sets and manage risk in conflict and
disaster”.
Mathur also stressed the importance of localized solutions and collaboration to foster
Several trends fuel the growth of the Indian Space Sector. Rainer Horn, Managing
Partner from Novaspace identified four key trends driving this growth. These include
broadband and IoT, are creating a fertile ground for innovation and investment.
AVM Rahul Bhasin, ACS (OPS) Space, Air Hqr added on the point of the importance
of integrating space situational awareness with air situational awareness. He said,
“There is a need for international cooperation in this domain to ensure the safety and
Anil Kumar Lahoti, Chairman of TRAI, highlighted the role of satellite technology in
The space sector has been a significant success story for Indian startups where tech
players develop solutions to make India self-sufficient. Dr. Pawan Goenka, Chairman
He said, “There are now over 200 startups in the Indian space sector now. In the last 12
months, lot of developments have happened in the space sector with both the
government and private sector. We are working on two areas, one is the whole
regulatory, authorization area where we are making good progress and the other is
driving Indian Space economy. These two tracks, scientific exploitation where ISRO is
leading the way and all the space startups is in deep tech and are at an inflexion point.
Somanath, Secretary of DoS and Chairman of ISRO addressed the challenges and
Space Sector.
He said, “The Journey of India’s Space Actors has not been an easy one. From
governmental to private, new actors must emerge. Within ISRO & DOS, we must chart
the future. The gap between civilian space and strategic space is becoming narrower.
Access to space must become cheaper. Exploration inspires this generation and future
He raised points on bringing down the cost of access to space, the emergence of
constellations for communication, and the need to inspire future generations through
space exploration.
India currently holds approximately 2% share of the global space economy which
currently stands at USD 360 billion. The sector has been forecasted to witness an
increase at almost 48% CAGR by 2028 to increase its share from USD 7 billion to
around 50 billion. There are more than 400 entities engaged with ISRO, including
numerous large corporations as well as MSME players that have been working towards
developing myriad systems and components for a more advanced space infrastructure
and successful launches. This number places India as the fifth country in the global
arena with the highest number of entities engaged in the space sector.
The successful orbital entry by Mangalyaan for Mars exploration on September 23,
2014, also makes ISRO one of the only four space agencies in the world to achieve so.
Achieving another milestone, ISRO also launched Aditya-L1, which will travel for around
1.5 million kilometres toward the Sun to perform extensive studies on the star’s outer
atmosphere.
The formation of the Indian National Space Promotion and Authorization Centre (IN–
SPACe) has played a crucial role as a facilitator between ISRO and private sector
participants. Under the recently approved Indian Space Policy, 2023, IN-SPACe has
been given the role of a single-window agency to authorise space activities undertaken
by the Government and private players. It is also responsible for promoting industry
clusters, zones, manufacturing hubs, incubation centres, accelerators, and technical
centres for emerging activities in the space sector.
The commercial division of ISRO, New Space India Limited (NSIL), also enables Indian
industries to undertake high-technology space-related functions. A total investment of
USD 1.2 billion has been announced by NSIL for increasing these commercial activities
and the involvement of Indian industries in the space sector.
Another evidentiary move by the Indian Government towards boosting the space sector
is the allocation of INR 12, 543.91 crore to the Department of Space in Budget 2023-24.
The budget allocation will enable the ISRO and IN-SPACe to facilitate better
programmes and regulations for private sector participation in the country.
Dating back to 2014, the “Make in India” initiative by the Indian Government has
focussed on raising more awareness and funds to bolster the manufacturing sector of
the country. In this past decade, the focus has also been heavily on setting up a robust
space programme domestically and reducing India’s dependence on foreign
manufacturers and space service providers.
With a heavy focus on manufacturing satellites, launch solutions, orbit management
solutions, etc., indigenously, the manufacturing segment in the space sector is expected
to make India one of the forerunners in the global space economy in the coming years.
The “Make in India” initiative in the space sector is also expected to drive more
innovation in the software sector, with data being termed as the “new fuel” to drive
growth.
It will also serve as a key driver for attracting more foreign direct investment for space
startups and related technology companies in India. FDI in the space sector will allow
more Indian spacetech companies to collaborate with foreign investors and foster more
knowledge exchange, and better-funded research and development.
The Indian space industry has been witnessing remarkable growth, especially with more
startups entering the market with their avant-garde technologies and knowledge.
Currently, there are 101 startups in India that operate in the space sector, having
received a total funding of around USD 108.52 million. This rapid propulsion in
investment has stemmed from factors such as the government’s push towards more
private player participation, increase in demand for geospatial technology, lower cost of
production, and shift towards lowering the reliance on foreign players for satellite
components, launch facilitation services, etc.
In November 2022, the first privately developed rocket, Vikram-S was launched by the
Indian space startup Skyroot Aerospace. Furthermore, Agnikul Cosmos, a private Indian
company set up India’s first launch pad at the Satish Dhawan Space Centre. Bellatrix
Aerospace, another Indian space startup is engaged in advanced in-space propulsion
systems and rocket propulsion technologies.
After the successful lunar landing by Chandrayaan-3, there has been an evident intrigue
of investors and venture capitalist firms in the Indian space tech startup sector.
Recently, on September 5, 2023, spacetech startup Manastu Space announced a $3
million pre-series A funding round. The Mumbai-based startup is involved in providing
solutions relating to green propulsion and debris collision avoidance systems for space
debris.
The Indian Space Policy, 2023 has also provided much-needed clarity on the role of
private sector participants and removed stern barriers to their entry in the sector. The
move has now paved the way for more spacetech startups to enter the aerospace,
communications, defence, telecom, materials, chemicals, and precision engineering
sectors that supplement the country’s space programmes. Other sectors that hold
significant potential for Indian spacetech startups are nanosatellites, disaster
management, telemedicine, imaging, navigation, collective robotics, AI, oceanographic
studies, broadband services, and augmented and virtual reality.
The surge in demand for more supplementary services is poised to increase the
demand for more space-based businesses in India. Areas such as data communication,
media, entertainment, and even tourism are also set to witness more innovative startups
mushrooming in the country, pushing India towards becoming a commercial hub for
cutting-edge space technologies.
With the constantly evolving legal arena of the country, the ease of doing business in
the space sector will increase, and more MSMEs and startups will find it easier to enter
the sector. The new policies on foreign trade, the space sector, and protection of assets
such as intellectual property, data, financial incentives, etc., will also make it easier for
new entrants to leverage this growth spurt. The satellite launch segment also holds
numerous opportunities for startups and MSMEs in India, especially for the
development of orbit management solutions relating to LEO, MEO, and GEO satellite
launches.
In Conclusion
The space sector in India has finally reached to point where it offers abundant
opportunities to emerging technology businesses that have the potential to minimise the
costs of space operations significantly. The vision of “Make in India” and “Aatmanirbhar
Bharat” initiatives call for a remodelling of the mostly government-led space sector of
the country. To fulfil the present vision of increasing India’s share in the global space
economy, private sector participation and boost to India’s space startup sector is
irrefutable. With a robust regulatory framework, more schemes to promote ease of
doing business for spacetech businesses, and a pathway for private sector investment,
the space sector of the country holds the potential to become a trailblazer in the global
space market.
‘Space sector contributed ₹20,000 crore to India’s GDP over the last decade’
India’s space sector has directly contributed about $24 billion (₹20,000 crore) to India’s Gross
Domestic Product over the last decade. It has directly supported 96,000 jobs in the public and
private sector. For every dollar produced by the space sector, there was a multiplier effect of
$2.54 to the Indian economy and India’s space force was 2.5 times “more productive” than the
country’s broader industrial workforce.
These “preliminary findings” were part of a presentation by Steve Bochinger, Affiliate Executive
Advisor, Novaspace, a European consultancy at the National Space Day celebrations in New
Delhi on Friday (August 23, 2024).
The Space Day celebrations are to commemorate the first anniversary of the successful landing
of the Chandrayaan-3 on August 23 last year.
The report was “initiated” by the Indian Space Research Organisation (ISRO), Mr. Bochinger
said, to evaluate the socio-economic impact of the space sector from 2014-2023 and the study
was conducted by Indian economics research firm econONE and Novaspace. The team
interviewed representatives from 56 Indian organisations in public and private sectors.
“India’s space sector has benefitted from decades of consistent investment... with $13 billion
invested in the last decade it is the 8th largest space economy (in terms of funding) in the
world,” said Mr. Bochinger.
The Indian space sector was diversifying and now had 700 companies including 200 start-ups
and had seen revenues grow to $6.3 billion in 2023, which was about 1.5% of the global space
market.
Satellite communications contributed 54% to the space economy, followed by navigation (26%)
and launches (11%). The main industries supported by the space sector were telecom (25%),
information technology (10%) and administrative services (7%), the report highlighted. The
complete report and the methodology used were not made public as of Friday evening.
Companies that the firm spoke to said that India’s progress in space had yet to significantly
benefit their own profitability but change was in the air. “Stakeholders say that the space sector
has largely contributed to the nation’s prestige, sovereignty and international leadership but
lesser impact on say, competitiveness, access to new markets etc. (They say) that’s because in
the last decade the space programme has been driven by political considerations but this is
expected to change as commercial space is a becoming a key priority area,” said Mr. Bochinger,
“Regulatory reforms that have been made are yet to realise their full effect. An under-developed
venture capital ecosystem is hampering space technology start-ups from accessing capital.
Achievements of India’s Space Program
India’s space program, led by the Indian Space Research Organisation (ISRO), has
achieved remarkable milestones, from launching low-cost missions like the Mars Orbiter
Mission (Mangalyaan) to successful lunar explorations with Chandrayaan. It has
positioned India as a major space power, advancing scientific research, satellite
technology, and international collaboration in space. This article aims to provide
information about Achievements of India’s Space Programs.
● Aryabhata (1975): India’s first satellite, marking the nation’s entry into space
research.
● PSLV Success: The Polar Satellite Launch Vehicle (PSLV) has become a
reliable workhorse, launching numerous satellites for India and other countries at
a fraction of global costs.
● Chandrayaan Missions: Chandrayaan-1 (2008) confirmed the presence of water
on the Moon, and Chandrayaan-3 (2023) made India the first nation to land near
the lunar south pole.
● Mangalyaan (2014): India’s Mars Orbiter Mission (MOM) made India the first
Asian country to reach Mars orbit, and the first worldwide to do so on its first
attempt.
● NAVIC: India’s regional satellite navigation system provides accurate positioning
services, enhancing national security and aiding disaster management.
● Gaganyaan Mission Preparation: The Gaganyaan mission aims to send Indian
astronauts into space, advancing India’s human spaceflight capabilities.
● Commercial Launches: ISRO’s commercial arm, NSIL, has attracted international
clients, launching over 300 foreign satellites, underscoring India’s competitive
edge in low-cost space solutions.
Way Forward
● To advance further, India’s space program should enhance investment in
research, innovation, and infrastructure, particularly in human spaceflight, deep-
space missions, and reusable launch technology.
● Strengthening collaboration with global space agencies will support knowledge
exchange and larger missions. Additionally, fostering private-sector involvement
through policies and incentives can boost indigenous technology development
and space-based applications.
● Building capabilities in space exploration, space-based industries, and resource
utilization, including lunar and asteroid mining, will strengthen India’s position in
the space economy. Investing in space science education and STEM programs
can nurture a skilled workforce essential for sustaining India’s space ambitions
long-term.
Conclusion
● India’s space program has evolved into a symbol of technological prowess,
innovation, and self-reliance. With milestones in lunar and Mars exploration,
satellite technology, and cost-effective launches, ISRO has placed India among
the leading spacefaring nations.
● However, to sustain its growth and address challenges, India must invest in
advanced research, expand private sector involvement, and enhance human
spaceflight capabilities. By building on its achievements, India can continue to
make significant contributions to space exploration and global scientific
knowledge.
technologies' used in the mission would pave the way for future space weather
mission designed to explore the Sun's corona, the outer atmosphere of the
It aims to study the Corona, which is hotter than the Sun's surface, and explore
the solar wind which is a stream of charged particles emanating from the Sun,
Venkitakrishnan said.
"The data from Proba-3 satellites would help scientists better understand and
predict space weather events, which can impact the Earth's magnetic field and
satellite operations."
He noted that the two satellites -- Coronagraph and Occulter-- would form a
'precise formation 150 meters apart after several orbital manoeuvres in the
coming days.
images of the Sun's corona. This setup will mimic a total solar eclipse which
traditionally lasts only for a few minutes and does not occur frequently. Proba
3 will provide 6 continuous hours of observation during each orbit, equivalent
for the latest mission, Venkitakrishnan said the ESA collaborated with Isro as it
"This shows the success of our space diplomacy and our capacity to provide
Agency.
Proba-3 Mission
precise satellite formation flying. It consists of two small satellites launched together that
will separate apart to fly in tandem, to prepare for future multi-satellite missions flying as
Current scientific and applications challenges call for the detection of ever fainter
signals and smaller features. Larger apertures, longer focal lengths and baselines that
are beyond what can be achieved with a single spacecraft will be required to meet these
In preceding years Europe has made significant progress in the field of multi-satellite
missions. ESA’s Automated Transfer Vehicle has demonstrated precision down to a few
centimetres when docking with the ISS while Sweden’s Prisma mission has
demonstrated formation flying for brief periods, maintaining cm-level accuracy across
tens of metres.
Proba-3 marks the next step in formation flying. As a world first, its two satellites –the
Coronagraph spacecraft and the Occulter spacecraft – will maintain formation to a few
millimetres and arc second precision at distances of around 150 metres for six hours at
a time. In effect the pair will be forming a virtual giant satellite. And this will be achieved
The two small satellites will be launched together in 2024 into a highly elliptical orbit
After a short preparatory period the two satellites will be separated and injected into a
safe relative tandem orbit. Included in the commissioning period will be a demonstration
of the mission’s Collision Avoidance Manoeuvre, ensuring they can be left safely in an
Normal operations will then include both formation flying manoeuvres and scientific
observations using a giant solar coronagraph that will block out the blinding light from
the solar disk in order to acquire continuous views of the Sun’s ghostly corona, or
surrounding atmosphere.
The cost in fuel would be too high to maintain formation throughout the orbit, so each
orbit will be divided between six hours of formation flying manoeuvres at apogee and
the rest of the orbit in passive safe drifting. The Proba-3 satellites will repetitively
control and other algorithms, such as relative GPS navigation, previously tried in ground
simulators. These techniques and simulators developed in the frame of Proba-3 will
missions. The mission will also validate the key technologies such as metrology
used for a future Mars Sample return mission and for de-orbiting satellites from low-
Earth orbit.