With 189 Start-Ups And $124.7 Mn Investment In 2023, India Eyes $44 Bn Space Economy In 10 Years

Union Minister Dr Jitendra Singh also said the Department of Space is actively revising FDI policy guidelines in consultation with DPIIT to foster further international involvement.

The current valuation of the Indian Space Economy stands at about $8.4 billion, approximately 2-3% of the global space economy.

Source : ISRO

New Delhi: The Indian space industry has witnessed an extraordinary surge, with the number of space start-ups escalating from a solitary entity in 2014 to an impressive 189 in 2023, according to the DPIIT Start-Up India Portal. Dr Jitendra Singh, Union Minister of State for Science & Technology, Personnel, Public Grievances, Pensions, Atomic Energy and Space, revealed these figures Wednesday, highlighting the nation's growing dominance in the space sector.

In a written response in the Lok Sabha, the minister said investment in Indian space start-ups reached a new high of $124.7 million in 2023. This investment is a clear indication of the sector's burgeoning potential and global interest, according to a statement issued by the Department of Space.

The current valuation of the Indian Space Economy stands at about $8.4 billion, approximately 2-3% of the global space economy. Singh emphasised the pivotal role of the private sector in propelling this figure to an anticipated $44 billion by 2033, facilitated by the newly implemented Indian Space Policy 2023. This policy is designed to encourage end-to-end space solutions encompassing satellite manufacturing, launch vehicle production, satellite services, and ground system manufacturing.

FDI In Space Sector

In a separate statement, Singh addressed the issue of Foreign Direct Investment (FDI) in the space sector. Presently regulated under the government route for satellite establishment and operations, the Department of Space is actively revising FDI policy guidelines in consultation with DPIIT to foster further international involvement.

Significantly, Non-Government Entities (NGEs) have launched their satellites, contributing to diverse sectors like agriculture, disaster management, and environmental monitoring. A landmark development includes the establishment of a private launchpad and mission control centre within the ISRO campus, a first for an NGE, with a sub-orbital launch scheduled in the near future.

Singh highlighted the growing role of private companies in satellite-based communication solutions, satellite integration, and the manufacturing of satellite subsystems and ground systems. Indian private space companies are also forging international collaborations, marking a new era in the sector.

Take Space Activities To Backward Areas 

Singh also outlined the initiatives to engage the academic community and startups, particularly in backward areas. This includes forming a national committee for space technology education, publishing a list of retired ISRO experts for mentorship, and encouraging student participation in space activities through various committees and skill development courses.

IN-SPACe has played a crucial role in this growth, signing approximately 45 MoUs with NGEs to support the realisation of space systems and applications, he said, adding that. These partnerships are expected to boost industry participation in manufacturing launch vehicles and satellites.

Singh mentioned the Indian Space Association (ISpA) among several industry associations contributing to the sector's growth, although their activities remain outside government purview.