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India's space economy expected to be worth $12.8 billion by 2025: Report
The growing demand for smaller satellites is set to boost this sector in the country, thereby attracting global startups here
- PUBLISHED: Tue 11 Oct 2022, 7:59 AM
- By:
- PTI
India's space economy is likely to be worth nearly $13 billion by 2025, with the satellite launch services segment set to witness the fastest growth spurred by increasing private participation, according to a report released on Monday.
The growing demand for smaller satellites is set to boost satellite manufacturing in the country, and will attract global startups in the sector to help incubate space tech companies here, said the report released by the Indian Space Association (ISpA) and Ernst and Young.
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India's space economy, which was pegged at $9.6 billion in 2020, is expected to touch $12.8 billion by 2025, according to the report titled 'Developing the Space Ecosystem in India: Focusing on Inclusive Growth'.
In terms of the dollar, the satellite services and applications segment would be the largest, with a turnover of $4.6 billion by 2025, followed by a ground segment at $4 billion, satellite manufacturing at $3.2 billion, and launch services at $1 billion.
"Indian space launch is expected to get a boost due to the government's positive step towards the inclusion of private players in the Indian space ecosystem," the report said.
The launch services segment was pegged at $600 million in 2020, and is projected to grow at a compound annual growth rate of 13 per cent to reach $1 billion by 2025, the report added.
"The availability of low-cost satellite launch vehicles coupled with mass production will lead to demand from customers around the world. Indian private companies are looking to exploit the space industry by using innovative technologies."
Setting up space parks across the country is likely to give a fillip to companies operating across the space value chain, especially manufacturing, the report stated.
"It will be key to attracting global start-ups working in the space sector and help to incubate space tech companies in India."
Several companies are utilising cutting-edge technologies to develop innovative launch solutions in India, and have built considerable expertise around the launch of LEO, MEO and GEO satellites, as well as orbit management solutions.
"The launch segment is fast becoming a key focus area for startups, as well as small and medium businesses (SMEs) in India, to drive the innovation agenda and make use of new revenue opportunities," the report said.
It noted that currently, India boasts of over 100 space tech start-ups with investments in the segment touching $68 million in 2021.
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