The Indian Space Association (ISpA) has unveiled a sector report titled “Developing the space ecosystem in India: focusing on inclusive growth”, in collaboration with Ernst & Young (EY) at the Indian Space Conclave. The report 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.

‘Indian Space Conclave’ at Sir Manekshaw centre, New Delhi, witnessed participation of industry leaders to deliberate on subjects like Atmanirbhar Bharat in Defence Space, realising India’s $5 trillion economy growth and enabling space for the common man. The conclave is followed by a 2-day exhibition put up by 24 exhibitors from leading space startups and academic institutions showcasing their products and offerings.

Speaking on the occasion Jayant D Patil, chairman, ISpA, said, “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 channelised in the right direction. With the rapidly growing space ecosystem, India is all prepared to grow to $13 billion by 2025 at a compound annual growth rate (CAGR) of 6 per cent. 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.”

Meanwhile, Dr. Jitendra Singh, Minister of State, Ministry of Earth Sciences, Space, Science and Technology, said “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 years. I’m glad our Hon’ble Prime Minister encouraged us to go ahead as space domain became open for the public-private participation, also preparing players and the outcome is that the sector is today attracting increasing number of startups. On 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.”

Also, S. Somnath, Secretary, Department of Space (DoS) and chairman, Indian Space Research Organisation (ISRO), said, “Our goal is to make the space and the rise of India much more bigger in the scale of operation. India has reached a point where we need to take the space sector to the next level and this is where the whole idea of opening up the space where the most important part is the knowledge base. Downstream applications are less complex, but when you go upstream it becomes much more complex and very difficult to provide failures. And this is where we need to support each other and this is where the role of space comes in. The space sector can solve a lot of problems and important issues of climate, mapping, internet services. These are few emerging markets which we will see growing.”

Further, Prashant Singhal, Emerging Markets TMT Leader, EY, said “I would like to congratulate ISpA on its first anniversary and for its contribution to the space industry in India. Space-based communication will be one of the primary mechanisms to narrow the digital divide in India. The sheer reach of satellites and the ability to quickly establish connectivity makes them extremely versatile in areas where terrestrial communication is difficult to reach. Opening up of the space economy to private participation in India heralds an era of growth and innovation. It is part of many pioneering space reforms being introduced. A conducive regulatory and policy framework, as well as promoting ease of doing business which is critical for investments to flow in the space domain, will go a long way in building a robust ecosystem. I hope the EY-ISpA report helps to further shape the dialogue in building the space economy in India and transform the lives of Indians.”

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 per cent of the global space economy in 2020 amounting to $9.6 billion in 2020, which was 0.5 per cent of the gross domestic production (GDP) in the country.
  • India space segments
    • Satellite services and application segment would form the largest share of the space economy accounting for 36 per cent of the space economy by 2025
    • The space launch segment is to grow the fastest by 2025 at a CAGR of 13 per cent spurred by growing private participation, latest technology adoption and the low cost of launch services
    • Investment in space tech start-ups increased 196 per cent year-on-year (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 billion and is expected to reach $3.2 billion 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 second 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.