Space economy poised for expansion, indicates study

India’s space economy is in a state of transition and, driven by national policies, the sector is poised for expansion through enhanced private investment and improved integration with the global private space industry, a study on the space economy has noted.

The findings of the study undertaken by the Indian Institute of Space Science and Technology (IIST) and the Centre for Development Studies (CDS), Thiruvananthapuram, have been published by Elsevier.

The research paper noted that the space economy ‘‘has evolved considerably’‘ and now accounts for an average of about 0.23% of the country’s GDP.

More startups are likely to enter the arena given the present policy scenario and the maturing of space technologies, the study ‘India’s Space Economy, 2011-12 to 2020-21: Its Size and Structure’ by Sunil Mani of CDS and V. K. Dadhwal and Shaijumon C. S. of IIST noted.

‘’Maturing of space technologies and the widespread diffusion of information and communication technologies have lowered the barriers to entering the space industry. This, combined with the incentivisation of the country’s start-up ecosystem, has led to the emergence of several space technology-based new firms,’‘ it said.

And with more formal technology transfers envisaged through the New Space India Limited (NSIL), it can be expected that more startups will be created in the future. The paper observed that existing start-ups focus primarily on sub-sectors such as launch vehicles, satellite/spacecraft sub-systems and satellite applications. A majority of them are based in Bengaluru where the Indian Space Research Organisation (ISRO) is headquartered.

Further, space economy needs to be paid closer attention and a framework for assessing its indirect impacts should be developed as the country’s economy in general grows and relies more on space technology and its benefits, the study noted.