India’s space economy to reach USD 40-45 billion in 7–8 years, says Jitendra Singh

New Delhi: India’s space economy, currently valued at around USD 9 billion, is expected to reach USD 40–45 billion over the next seven to eight years, Union Minister Dr Jitendra Singh said on 17 October. He was speaking at a media roundtable in New Delhi on “Space, Sovereignty and New Economy”. Dr Singh is Minister of State (Independent Charge) for Science & Technology and Earth Sciences. He is also MoS in the PMO and for Personnel, Public Grievances, Pensions, Atomic Energy and Space.

The Minister said India must now move beyond demonstrating its technological capabilities. It must build globally competitive commercial space companies, he said. Greater domestic and international investment, predictable demand, faster regulatory approvals and sustainable business models would be essential. As a result, Indian enterprises could scale up and expand their presence in global markets.

The ‘Bloomberg New Economy Forum’, being held in New Delhi, organised the roundtable. The discussion examined how countries can turn sovereign space capabilities into commercially competitive industries. It also covered how to attract private capital and build stronger supply chains while safeguarding national interests. Participants also discussed the evolving global space economy, the role of international partnerships and the challenges of scaling up private space enterprises.

Vinod Kumar, Director (Promotion) at the Indian National Space Promotion and Authorisation Centre (IN-SPACe), took part in the session. So did Aisha Bowe, Founder and CEO of STEMBoard and LINGO, a former NASA engineer and Blue Origin astronaut. The session brought together representatives from the space industry, entrepreneurship, academia and the international space community.

Private participation and the push for demand

Dr Singh said the opening of India’s space sector to private participation in 2019–2020, under Prime Minister Narendra Modi, had produced significant results within five to six years. In his view, India’s experience shows the potential of bringing government institutions and private industry together. Such a sector needs substantial expertise, investment and long-term commitment. The priority now, he said, is to convert these capabilities into commercially viable businesses that can compete internationally.

He stressed that generating demand is essential for the growth of private space companies. Referring to the government’s use-case-based approach, he said anchor government customers can help enterprises demonstrate their technologies. Support for proof-of-concept projects can also help them move towards commercial deployment. A predictable customer base, he added, can give companies the confidence to invest in production. It can also help them develop market-ready products and build sustainable revenue streams.

Dr Singh also stressed the need for timely regulatory approvals, lower business costs and stronger supply-chain integration. Companies seeking installation or export licences should get approvals within defined timeframes, he said. Referring to GST-related measures for space products, he said reforms must translate into practical benefits for industry. Investment becomes sustainable, he added, when businesses have predictable demand, efficient processes and a clear path to commercial growth.

On investment and international cooperation, the Minister said India is opening up opportunities for capital and partnerships. At the same time, it continues to strengthen indigenous capabilities. Greater investment can support technology development, manufacturing and access to international markets, he said. However, domestic capabilities remain important for national security and strategic autonomy.

He called for stronger collaboration between Indian government institutions and private enterprises, complemented by partnerships with international counterparts. According to him, this approach can help Indian companies integrate into global supply chains and expand their customer base. It can also help them contribute to the wider space economy without compromising national interests. The objective, he said, is to combine the strengths of public and private enterprises in India with the capabilities of partners abroad.

Space technology supports development on Earth

The Minister said India’s space programme is distinguished not only by its achievements in space but also by the extensive use of space technology on Earth. Satellite communications, geospatial applications and Earth observation are supporting infrastructure development, project monitoring, agriculture, disaster management and defence.

Dr Singh referred to the use of space technology for project clearances, monitoring implementation timelines and geotagging development works. India is also providing space-based information and support for disaster management to neighbouring countries, including Myanmar, Bangladesh and Sri Lanka. In his view, these applications show how investments in space capabilities can improve public services and support development. They can also create opportunities for commercial applications.

The wider economic value of the space sector, he said, lies in connecting technological achievements with practical applications and the needs of citizens. Alongside launch vehicles and satellites, downstream services, data-driven solutions and industrial applications will be important. They will help expand the market for Indian space companies.

Dr Singh emphasised that national space capabilities and international cooperation need not be competing objectives. India must continue to build its own technological strengths, he said. At the same time, it should work with global partners to expand opportunities for its industry. Stronger domestic and international public-private partnerships, he added, can support investment, technology development, supply-chain integration and access to new markets.

The Minister also stressed the importance of remaining open to progressive ideas and adapting policies as technology and industry requirements evolve. He said the opening of the space sector to private participation reflects the value of enabling new players to contribute alongside established public institutions.

India’s next phase of space-sector growth will depend on turning technological strengths into commercially successful enterprises, he said. Greater investment, predictable demand, efficient regulatory processes, indigenous capabilities and international partnerships will be central to this transition. Therefore, these factors would position the country for a larger role in the global space economy, he said.