Question:

Will the PRIME MINISTER be pleased to state:

(a) the current size of the country’s space economy and the share split between
Government and private entities;

(b) the growth in the country’s space economy over the last five years;

(c) whether Government proposes to increase the share of the private sector in the
country’s space economy, if so, the steps taken so far

(d) the projected size of the country’s space economy in the years to come and the role of
the private sector in it; and
(e) the steps taken by Government to promote private investment in the space sector?

Answer

MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC
GRIEVANCES & PENSIONS AND IN THE PRIME MINISTER’S OFFICE
(DR. JITENDRA SINGH):

(a) The current size of the Indian Space Economy is estimated around 8.4 Billion USD.
Of this, the downstream services market, primarily comprising of communication and
data applications, accounts for close to 80% of the total space economy, wherein the
private sector is a major contributor. The upstream market i.e. satellite and launch
operations, is primarily contributed by Government, with private sector in a vendororiented role towards manufacturing and delivering subsystems/components

(b) As per the various market surveys, the space economy has grown with an average
CAGR of 8%

(c) Yes, Sir. The following major initiatives have been taken by the government to
increase the share of the private sector in the Indian space economy:
1) The space sector has been liberalised and private sector allowed to carry out end
to end space activities.
2) Indian National Space Promotion and Authorization Centre (IN-SPACe) was
created in Department of Space for promoting, authorising and overseeing the
activities of non-government entities (NGEs) in Space Sector.
3) India Space policy 2023 has been released, where roles and responsibilities of all
the stakeholders contributing to the overall Indian Space Ecosystems defined.
4) Various schemes to encourage and hand hold private sector also announced and
implemented by IN-SPACe, i.e., Seed fund Scheme, Pricing Support Policy,
Mentorship support, Design Lab for NGEs, Skill Development in Space Sector,
etc.

(d) The aspirational targeted size of Indian space economy is about 44 Billion USD by
the year 2033. The role of the private sector will be prime to achieve the expected
figure. It is expected that private sector will take up independently end to end solution
in satellite manufacturing, launch vehicle manufacturing, provide satellite services,
and manufacture ground systems.

(e) In addition to the initiatives taken at (c) above, the investment in Space Start-Ups has
increased from 6 Mn USD in 2019 to over 125 Mn USD in 2023 ($370 Mn
Cumulative). The revised FDI policy is at its final phase of approval, which will
enable investment in all the sectors of space economy.