India projects five-fold growth in space economy to $44 billion by 2033, bets on downstream services and exports

India’s space sector is poised for significant expansion, with projections indicating growth from USD 8.4 billion in 2022 to USD 44 billion by 2033, driven primarily by the increased adoption of satellite-enabled services and a substantial rise in exports, according to a new report.

According to a report by Confederation of Indian Industry (CII) and KPMG,India is shifting from traditional space activities, which centered on hardware manufacturing and launch achievements, to a greater focus on monetising downstream services such as Earth Observation (EO), Satellite Communication (SatCom), and Navigation (NavIC).

These services are increasingly embedded across sectors including telecommunication,agriculture, disaster management, urban planning, and infrastructure monitoring.

"India's space sector has undergone a transformation, evolving from a mission-led programme to an innovation-driven economy anchored in satellite-enabled services and applications," said Mallavarapu Apparao, Chairman of CII’s National Committee on Space.

Earth Observation satellites such as Cartosat and RISAT now provide crucial data for applications in governance, while the Navigation system NavIC and communications satellites like the GSAT series facilitate secure connectivity and precision navigation. The report said that these services are pivotal in addressing real-world challenges and enhancing national resilience."The decisive lever of growth lies in translating space infrastructure into mission-grade services", it said

Strategically, India aims to increase its share of the global space economy from approximately 2 percent to 8 percent by 2033, capturing a growing market valued globally at USD 1.8 trillion by 2035. "Driven by ISRO, a growing private sector and nearly 200 emerging startups, the sector is witnessing rapid innovation in satellite manufacturing, launch vehicles, and downstream services," Chandrajit Banerjee,Director General of CII.

Institutional reforms are also instrumental in driving this growth. The consolidation of demand through the Indian National Space Promotion and Authorization Centre (IN-SPACe) has enabled a more structured approach to procurement, creating predictable markets and facilitating efficient utilisation of satellite assets. "As India looks ahead to its Vision 2047 goals, it is essential to embed space applications into operational systems, backed by policy certainty and institutional readiness," said Rohan Ganapathy, Co-chairman of CII’s National Committee on Space.

From a strategic perspective, India is planning significant enhancements in defence capabilities through space assets, including the planned launch of 52 dedicated satellites for intelligence, surveillance, and reconnaissance (ISR). Beyond the defence sector, the integration of satellite-based services into disaster response, rural development, and other public governance functions is seen as foundational to strengthening national resilience and effective service delivery according to the report.