India Space Economy Hits $8.4 Billion as Reforms Pay Off

India’s space economy has surged to an estimated $8.4 billion, driven by rapid growth in private sector involvement and new policy reforms, Union Minister Dr. Jitendra Singh told Parliament on Friday.

According to Singh, this growth follows significant shifts that occurred after 2019 that opened up the space industry to commercial players who now compete with the traditional agencies such as ISRO.

This is not only a new source of money that led to the growth of the space economy of India. Approximately 399 startups are currently in operation in the launch vehicles, satellite building, propulsion systems and space-grade electronics. These businesses are forging ahead with creativity, drawing investments and inventing employment in high-technology sectors that were not there a decade ago.

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Singh identified the development of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) as one of the reforms. This body is acting like a one-stop shop between the players in the private sector, government departments and ISRO and they have facilitated the jump through and accelerated the working process.

It is noted that the latest Economic Survey 2025-26 pointed out that this growth makes the space economy of India around 2 % of the world market and has ambitious expectations of the future. Launch services, satellite communications, earth observation, navigation technology and a growing private ecosystem will drive India to almost triple this amount to approximately $44 billion by the decade.

India has also enhanced its international profile in the last 10 years through launching hundreds of foreign satellites on behalf of other nations to its existing reputation of reliable and low cost space services. As the commercial potential continues to increase, this industry is currently regarded as a major contributor to the next round of technological economic growth in India.