The Indian space economy is expected to reach $13 billion by 2025, announced a joint report by Ernst and Young (EY) and the Indian Space Association (ISpA) on Monday. ISpA is an apex, non-profit industry body that works towards the development of private and public satellite companies in India.

The report titled Developing the Space Ecosystem in India: Focusing on Inclusive Growth stated that the space launch segment would grow rapidly at a CAGR of 13%, spurred by growing private participation, low cost of launch services, and the latest adoption of technology. The growing demand for smaller satellites would also attract global start-ups to help incubate space tech companies in India. 

Jayant D Patil, chairman of ISpA, says, “With the rapidly growing space ecosystem, India is prepared to grow to $13 billion by 2025. We believe, as India looks forward to the new space policy, the private industry’s role is set to create a revolution in the current value chain of the Indian space economy.” 

Satellite services and application segments will account for 36% of the space economy by 2025, forming the largest share of the space economy. The survey further stated that India is home to over 100 space tech start-ups, with investments rising up to 196% YoY in 2021. 

In 2020, the country’s satellite manufacturing opportunity was estimated at $2.1 billion and would reach $3.2 billion by 2025, said the report. 
Moreover, by 2025, the satellite manufacturing industry is expected to be the second fastest-growing segment in the Indian space economy. The study found that the upcoming space parks across the country would boost companies operating across the space value chain, especially manufacturing.