India's Space Budget Doubled In 2023-24 Compared To 2013-14, Satellite Launch Revenue For 2014-23 $157 Mn: Jitendra Singh

Singh also said that the Indian space sector is projected to grow at a rate of six to eight per cent in coming year. The space budget for 2023 to 2024 is Rs 12,544 crores/.

Union Minister of Science and Technology said that from 2014 to 2023, the revenue generated from satellite launches was $157 million. From 2014 to 2023, 396 foreign satellites, and 70 domestic satellites were launched.

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Indian space economy: The budget allocated to India's Department of Space has doubled for the financial year 2023-2024, compared to the financial year 2013-14. The space budget for 2013 to 2014 was Rs 6,972 crores, while that for 2023 to 2024 is Rs 12,544 crores, Union Minister of Science and Technology Jitendra Singh said in a written reply to the Lok Sabha on December 20, 2023. According to Singh, the satellite launch revenue from 2003 to 2013 was $15 million. 

He said that from 2014 to 2023, the revenue generated from satellite launches was $157 million. From 2014 to 2023, 396 foreign satellites, and 70 domestic satellites were launched. Singh compared the figures to the numbers of foreign and domestic satellites launched from 2003 to 2013, which were 33 and 31, respectively, according to a statement released by the Department of Space. 

The minister said that the Indian space sector is projected to grow at a rate of six to eight per cent in coming years, according to global estimates. 

There was only one space start-up in 2014, but in 2023, the number of space start-ups in India is 189, according to the Department for Promotion of Industry and Internal Trade (DPIIT) Start-Up India Portal. 

Singh revealed these figures in the written response. Investment in Indian space start-ups in 2023 was $124.7 million. 

More about the Indian space economy

The Indian space economy has a valuation of about $8.4 billion at present. This accounts for two to three per cent of the global space economy. Due to the contributions of the private space sector, and the efficiency of the Indian Space Policy 2023, the Indian space economy is expected to reach $44 billion by 2033, according to Singh. The policy encourages end-to-end space solutions encompassing satellite manufacturing, launch vehicle production, satellite services, and ground system manufacturing.

The Indian space segments which contribute to the country's space economy are satellite manufacturing, launch services, ground segment and satellite services. Satellite manufacturing is projected to have a market value of $3.2 billion by 2025, ground segment a market value of $4 billion, launch services a market value of $1,046.6 million, and satellite services a market value of $4.6 billion, according to a a joint report by Ernst & Young (EY) and the Indian Space Association (ISpA), the apex industry body created to be the collective voice of the Indian space industry. 

In 2020, India accounted for approximately 2.6 per cent of the global space economy, amounting to $9.6 billion. This was 0.5 of the gross domestic product (GDP) in India. 

The Indian space programme is boosted by the realisation of indigenous technology, facilities, systems and rollout of services in a systematic manner. Satellite broadcasting services have benefited a large part of the population, and served as the media and entertainment industry. 

The opening up of the space economy to private participation ensures an era of growth and innovation in the space sector, the report says. By taking advantage of the latest technology, improving access to capital and technology, and promoting independent launch solutions by Indian private companies for satellites and spacecraft, the Indian space economy can be boosted.

The satellite services segment would account for 36 per cent of the Indian space economy by 2025, the ground segment would account for 31 per cent of the space economy, the satellite manufacturing segment would account for 25 per cent of the space economy, and the launch services segment would account for 8.15 per cent of the space economy, according to the report. 

The market values of satellite manufacturing, launch services segment, ground segment, and satellite services segment in 2020 were $2.1 billion, 567.4 million, $3.1 billion, and $3.8 billion, respectively.

In 2021, there was a year-on-year increase of 196 per cent in space tech startup investments.

Setting up space parks across India is likely to give a boost to companies operating across the space value chain, especially manufacturing, and will help attract global startups working in the space sector, the report says. Space parks will also help incubate space tech companies in India, and will provide a ready ecosystem for small to medium-sized businesses and startups focused on satellite manufacturing.