Rapid growth projection
India’s Expanding Space Economy Towards 2033: India’s space economy is projected to surge from USD 8.4 billion in 2022 to USD 44 billion by 2033, according to a joint report by CII and KPMG. This expansion would raise India’s share in the global space economy from nearly 2% to 8% in the next decade.
Changing focus in space services
The report highlights a shift towards monetizing downstream services. These include Earth Observation (EO), Satellite Communication, and Navigation, now integrated into sectors like telecommunication, agriculture, disaster management, urban planning, and infrastructure monitoring.
Static GK fact: The Indian Remote Sensing (IRS) programme, started in 1988 with IRS-1A, forms the backbone of EO in India.
Drivers and enablers
Nearly 200 space startups are driving innovation in satellite technologies, propulsion, and data analytics. Institutional reforms such as IN-SPACe consolidate demand and enable private players. Platforms like the Bhoonidhi portal integrate space-based inputs for governance.
Static GK tip: IN-SPACe (Indian National Space Promotion and Authorization Centre) was set up in 2020 under the Department of Space.
Challenges in scaling
Despite growth, challenges remain. NavIC’s limited regional architecture restricts global usability. EO commercial markets are underdeveloped due to weak enterprise awareness and fragmented demand. High capital requirements, long incubation, and uncertain regulation deter private participation.
Tax-related ambiguities in GST, digital taxation, and PPP revenue-sharing also create hurdles. Concerns about space debris, security, and workforce shortage add complexity to scaling.
Policy initiatives and reforms
The Indian Space Policy 2023 allows end-to-end Non-Governmental Entity (NGE) participation across space activities. NewSpace India Limited (NSIL) functions as ISRO’s commercial arm, pushing exports and services. Additional measures include 100% FDI in space sector and a ₹1,000 crore Venture Capital Fund for startups.
Static GK fact: NSIL was established in March 2019 as a Government of India company under the Department of Space.
Outlook for 2033
India is positioned to become a major global player by 2033, contributing significantly to satellite-enabled services and exports. The next decade will be shaped by policy clarity, private sector participation, and workforce development, making the space economy a critical driver of national growth.
Static Usthadian Current Affairs Table
India’s Expanding Space Economy Towards 2033:
| Topic | Detail |
| Space economy projection | From USD 8.4 billion (2022) to USD 44 billion (2033) |
| Global share | India’s share expected to rise from 2% to 8% |
| Key focus areas | Earth Observation, Satellite Communication, Navigation |
| Major drivers | 200 startups, IN-SPACe reforms, Bhoonidhi portal |
| Main challenges | Limited NavIC reach, weak EO market, regulatory uncertainty |
| Tax issues | GST ambiguities, PPP revenue-sharing, digital taxation |
| Policy reform | Indian Space Policy 2023 enabling NGE participation |
| ISRO commercial arm | NewSpace India Limited (NSIL), set up in 2019 |
| Investment support | 100% FDI and ₹1,000 crore VC fund |
| Strategic concern | Space debris, security risks, skilled workforce shortage |
