India’s space economy has expanded to an estimated 8.4 billion dollars, with nearly 400 startups now operating across the space value chain following the opening of the sector to private participation, Union Minister of State Independent Charge for Science and Technology and Space Dr Jitendra Singh informed the Rajya Sabha on Wednesday.
Replying to a starred question in the Upper House, Dr Jitendra Singh said the sharp growth in the sector followed a series of policy reforms initiated after 2019 to enable private industry participation in space activities that were earlier dominated by government institutions. A key reform, he noted, was the establishment of the Indian National Space Promotion and Authorisation Centre IN SPACe, which acts as a single window interface between private players and government agencies including the Indian Space Research Organisation.
The Minister said India has always possessed strong scientific capability and institutional commitment within ISRO, but the absence of a structured enabling ecosystem had earlier limited broader industrial and entrepreneurial participation. The recent reforms, he said, addressed this gap by creating policy clarity, regulatory support and institutional facilitation for private investment in the space sector.
As a result, the number of space startups has risen from single digit figures before the reforms to 399 at present. Dr Jitendra Singh stated that the sector, which was once marginal in economic terms, is now valued at about 8.4 billion dollars and is projected to grow four to five times over the next eight to ten years, potentially reaching 40 to 45 billion dollars.
He informed the House that private entities are now active across multiple segments of the space ecosystem, including launch vehicles, satellite manufacturing, propulsion systems, space grade electronics and downstream applications. As an example of expanding industry participation, he said Hindustan Aeronautics Limited has signed a technology transfer agreement with ISRO for the Small Satellite Launch Vehicle. Several Indian companies are also developing satellite platforms, launch systems and advanced propulsion technologies, reflecting the growing depth and diversity of private sector engagement.
Dr Jitendra Singh also highlighted India’s increasing footprint in the global commercial launch market. Of the 434 foreign satellites launched by ISRO to date, 399 have been launched since 2014. These launches have generated revenues of approximately 323 million euros and 233 million dollars, underscoring India’s competitiveness and reliability as a launch service provider.
Concluding his reply, the Minister said the space sector is poised to become a significant contributor to India’s future economic growth. With private investment accelerating and institutional mechanisms firmly in place, he said the sector has moved beyond its traditional boundaries and is emerging as a key domain of manufacturing, innovation and entrepreneurship in the country.
