The Indian space economy is poised for remarkable growth over the next decade, bolstered by a robust policy framework, increased private-sector participation, and global recognition of India's cost-effective space missions. As India solidifies its position as a significant player in the global space arena, the ripple effects on international private startups and the associated challenges deserve close examination.
The Indian government’s forward-looking policies, such as the establishment of the Indian National Space Promotion and Authorization Center (IN-SPACe) and liberalization of space activities, have catalyzed private investment in the sector. By creating an enabling environment, these policies have reduced barriers for startups and encouraged innovation in satellite technology, launch services, and downstream applications. The increasing focus on public-private partnerships (PPPs) and the collaboration between ISRO and private firms have set the stage for exponential growth. With an estimated market size of $13 billion in 2023, India aims to capture 10% of the global space economy, projected to exceed $600 billion by 2033.
India's cost-effective space programs, epitomized by missions like Chandrayaan-3 and Mangalyaan, have set new benchmarks for affordability. This creates opportunities for international startups to collaborate with Indian firms, leveraging their manufacturing and engineering efficiencies. The upcoming Gaganyaan mission, which will send Indian astronauts into space, represents a significant milestone, further showcasing India’s growing capabilities. Additionally, ISRO’s collaboration with NASA on the NISAR (NASA-ISRO Synthetic Aperture Radar) satellite highlights India’s ability to engage in advanced technological partnerships on a global scale.
Private players from countries with high-cost structures may increasingly outsource components or entire projects to India. This trend fosters a more interconnected global space economy, wherein Indian companies act as both competitors and enablers. India’s advancements encourage startups worldwide to innovate and adapt. For example, as India’s small satellite industry grows, startups are exploring complementary technologies like advanced propulsion systems or AI-driven satellite analytics.
Organizations like Space Kidz India are contributing significantly to this ecosystem. Known for engaging young minds in aerospace innovations, Space Kidz India has already launched multiple satellites and is actively involved in promoting STEM education. Their upcoming missions aim to further inspire and integrate the next generation into the global space economy. Other startups, such as Skyroot Aerospace, Agnikul Cosmos, Dhruva Space, and GalaxEye, are also playing vital roles in building India’s space economy. Skyroot Aerospace, for example, successfully launched India’s first privately developed rocket, Vikram-S, showcasing the potential of private-sector capabilities. Agnikul Cosmos is developing customizable small-lift launch vehicles, while Dhruva Space focuses on building innovative satellite platforms and solutions. GalaxEye is working on multi-sensor imaging satellites to provide unique data for industries like agriculture, defense, and climate monitoring.
The demand for small satellites and low-cost launches positions India as a hub for affordable space solutions. From telecommunications to precision agriculture and disaster management, India’s growing expertise in geospatial services is expected to drive revenues. Emerging ventures in space tourism and deep-space exploration signal new opportunities for economic diversification. The increasing number of space missions, such as Aditya-L1 for solar observation and collaboration on lunar exploration projects, highlights India’s expanding portfolio in space science and applications.
While policies have improved, complexities in licensing and compliance could deter rapid scaling. Expanding launch facilities and testing centers is crucial to meet growing demand, and bridging the talent gap in advanced aerospace technologies remains a priority. On the global stage, established players like SpaceX and emerging nations intensifying their space programs could pose stiff competition. Balancing international collaborations with national security concerns is a delicate task, and addressing space debris and environmental concerns will require global cooperation and innovation.
The next decade promises transformative growth for the Indian space economy, driven by strategic investments, private-sector dynamism, and international collaboration. While challenges persist, India’s unique value proposition as a cost-effective, innovative, and reliable space player is set to redefine the global landscape. Organizations like ISRO, NASA, and private entities such as Space Kidz India, Skyroot Aerospace, Agnikul Cosmos, Dhruva Space, and GalaxEye will play pivotal roles in shaping the future. The journey ahead is not just about economic expansion but also about fostering a sustainable and inclusive space ecosystem that benefits humanity as a whole.
About the Author
Dr. Srimathy Kesan, Founder & CEO of "Space Kidz India" (SKI), an aerospace startup designing, manufacturing and launching nano and micro satellites in India. 19 NSLV’s (Near Space Launch Vehicles), BallonSat’s, 3 Sub-Orbital satellites, and 5 Orbital satellites were designed, manufactured and launched by Dr. Kesan and her team, who are young adults. The orbital satellites were all launched through Indian Space Research Organization- ISRO. Notably, her guidance led to the historic launch of 'KALAMSAT - The World's lightest and First-ever 3-D printed satellite' via NASA’s Terrier Orion rocket, in 2017, showcasing the ingenuity and potential of young Indian talent.
Teaching the nuances of building a BalloonSAT to the students from humble backgrounds of Seychelles, Africa, with support from UNESCO is a notable event in her career as she received accolades from the Vice President of the Country. Furthermore, 1st time in the World, she conceived and spearheaded the “AzaadiSat” project, involving 750 rural girls from Kashmir to Kanyakumari in building and launching a satellite on 10th February 2023, symbolising empowerment and inclusivity in space exploration. This apart, a remarkable tribute to India's Independence, Dr. Kesan conceptualised to unfurled the “Indian National flag” at 30kms near Space, garnering global recognition as a tribute to any country. Additionally, she had sent the holy book of India, the Bhagvath Gita, into space, symbolising the fusion of spirituality and scientific exploration. Dr. Kesan's commitment to scientific education is evident in initiatives like "Young Scientist India," Had the opportunity to meet and motivate over 1million across the globe.
Moreover, her distinction as the only Indian bestowed with the Ambassador status to the top 3 research centers' Space camps underscores her unparalleled contributions to space education and exploration. Bestowed with the rarest opportunity of being the 1st Woman from India to fly the Zero Gravity flight alongside Appolo astronaut and Moon Walker Charles Duke, 1st Woman in NASA Ms. Poppy Northcut and Private Astronaut Richard Gariett. Invitation to share dais with the reputed Physicist Stefen Hawking is a milestone achievement. Applauded by the President and Prime Minister of India, for empowering rural girls in satellite building to fostering scientific temper among high school students, Dr. Srimathy Kesan's journey epitomises resilience, vision, and unwavering dedication.