India's Space Economy Records Strong Growth With Rs 2,940 Cr Boost: Study

A new study reveals that in 2020–21, the space sector accounted for just 0.19 per cent of India's Gross Domestic Product (GDP). However, recent developments suggest an upward trend.

The commercial arm of ISRO, New Space India Limited (NSIL), generated Rs 2,940 crore in revenue in 2022–23, with a projected annual growth rate of 24 per cent.

The study, authored by experts from various Indian academic institutions, highlights the impact of policy reforms like the Space Activities Policy 2023 and the creation of the Indian National Space Promotion and Authorisation Centre (In-SPACe).

India's space economy spans manufacturing, operations, and applications-ranging from launch vehicle production to satellite-based services.

ISRO remains the core driver, employing over 17,000 people, while the broader space industry supports around 50,000 jobs. Notably, space startups have surged from just one in 2014 to 229 by mid-2024, employing about 2,500 people.

Private investments in satellite manufacturing, launch services, and applications like telecom and agriculture are helping boost productivity across sectors. The study emphasizes India's growing role in deep space exploration, private sector participation, and international collaborations.

Despite limited spending relative to GDP, the space sector's technological innovations and spillover benefits significantly impact national development. Satellite-based services are improving agriculture, disaster management, navigation, infrastructure planning, and more.

The researchers conclude that India's space industry, though currently small in size, has immense potential and could become a major economic driver in the years ahead.

(KNN Bureau)

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