Expanding space economy: new study calls for evidence-based policies, supportive regulations
A new study on India's space economy has called for 'evidence-based policies' for expanding the space sector and the creation of enabling environments for private players, public-private partnerships and innovation through supportive regulations.
A research paper highlighting the findings, 'Space economy of India, its impact on the rest of the economy' published in the journal Space Policy (Elsevier) observed that increasing private-sector involvement in the Indian space sector has triggered 'significant growth and transformation' in recent years, a change that is reflected in employment trends as well.
While the number of private space companies in India has jumped from a mere 11 in 2019 to over 400 in 2024, the funding for private space companies touched $124.7 million in 2023, up from $67.2 million in 2021, noted the paper by Sunil Mani of the Centre for Development Studies (CDS); V.K. Dadhwal of the National Institute of Advanced Studies, Bengaluru; and C.S. Shaijumon of the Indian Institute of Space Science and Technology (IIST).
'Remarkable expansion'
'The private space sector in India is undergoing remarkable expansion, fuelled by a combination of well-established corporations and a burgeoning number of innovative start-ups. This vibrant ecosystem is being shaped by close collaboration with the Indian Space Research Organisation (ISRO), leading to unprecedented levels of technological advancement and job creation across the industry,' the paper noted.
Consequently, the demand for senior leadership positions in the private space sector is up. 'Companies are seeking executives with specialised skills in spacecraft design, launch vehicle development, ground station management, remote sensing, and space policy,' it noted.
On the one hand, the space sector opens up new revenue streams and direct and indirect avenues for jobs within the industry as well as in local and regional economies. On the other, it helps improve efficiency, social inclusion, cost avoidance in the economy, and monitoring environmental impacts.
The authors noted that in 2020-21 India's space economy was valued at approximately ₹38,700 crore, representing 0.20 % of the Gross Domestic Product (GDP). Though modest in scale, it nonetheless has a disproportionately large developmental and socioeconomic impact, they observed. 'As public and private investments grow, these impacts are expected to deepen and diversify, reinforcing the strategic and economic relevance of space as a driver of India's inclusive growth and technological progress,' the paper said.
The findings come against the backdrop of the Union government opening up the space sector to private players and the Indian Space Policy 2023.
The present study, the authors said, was intended to address 'several of the analytical and empirical gaps' in existing literature on the space economy. They underscored the need for 'updated and comprehensive' analyses of the space economy to guide future policies and strengthen India's status in the global space arena.
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