India Eyes Major Stake In $1.8 Tn Global Space Economy

India is set to play a significant role in the future space economy, aiming to capture about 8 per cent of the global market by 2033. Space has increasingly transformed life on Earth, offering solutions to major challenges like climate change, and aiding in communications, smart devices, navigation, weather forecasting and disaster management.

The global space industry is projected to be worth around USD 1.8 trillion by 2035. Space, once viewed as the final frontier, is now emerging as a potential solution to some of the world's most pressing challenges, including economic distress and environmental issues. This evolving role offers both purpose and promise for the space economy.

According to forecasts from the World Economic Forum and McKinsey, the global space economy could grow to USD 1.8 trillion by 2035, potentially reaching USD 2.3 trillion if access to data improves and space entry costs decrease.

India’s space economy is also expected to expand significantly, growing from its current value of around USD 8.4 billion to USD 44 billion by 2033. This growth will be driven by increased investment, local manufacturing and a supportive regulatory environment, the reports stated.

Satellite technology supports nearly every smart device on Earth, enabling advanced communication, navigation, disaster warnings, weather forecasting and defence capabilities.

Recently, NASA awarded a contract to the Bengaluru-based startup Pixxel, to provide hyperspectral earth observation data. The contract is part of NASA's USD 476-million commercial smallsat data acquisition program and will run through November 2028. Pixxel's data will help NASA research earth science and applications and may help with understanding climate change, agriculture and more.

Founder and CEO, Awais Ahmed wrote on X, “Super excited to announce today that Pixxel has now been selected as part of NASA’s Commercial SmallSat Data Acquisition Program!”

“As the youngest company in a group that includes some of the most established names globally in Earth Observation, this is a crucial milestone for our plans to build a health monitor for the planet through our unique hyperspectral data,” Ahmed added.

Radhakrishnan Nair, the former Isro scientist, said that India's space economy is on the cusp of a massive transformation. With our strong heritage in satellite technology and cost-effective space missions, we are well-positioned to capture a significant share of the global market.

Nair believes that the key to growth will be to further incentivise private sector participation, scale innovation in space tech, and continue leveraging government support through initiatives like the Indian Space Association (ISpA).

International collaboration will be critical in ensuring the success of India’s ambitions, especially in the context of sustainable space exploration and reducing space debris, he added.

With the government fostering a more open space policy and initiatives like the Indian National Space Promotion and Authorisation Center (IN-SPACe) encouraging private participation, we can expect rapid growth in both public and private space ventures, said Anil Verma, a space policy expert.

Space technology is also being utilised to monitor methane leaks from ageing industrial infrastructure and other sources. Companies like SpaceX and Blue Origin are making strides in space tourism, while asteroid mining for precious metals and other resources is on the horizon, potentially offering materials for space construction and valuable resources for Earth.

The competition within the space sector is fierce but can lead to significant innovation. The United Nations advocates that space should benefit all humanity, emphasising the importance of inclusive participation rather than small, exclusive groups dominating space activities.

Microgravity environments in space present unique opportunities for manufacturing specialised materials and products, including advanced pharmaceuticals and high-precision components.

Improved Earth observation capabilities will generate crucial data for environmental protection. The "overview effect," experienced by space travellers, highlights the planet's beauty and vulnerability, fostering a deeper respect for Earth and the need to care for it.

The future space economy is expected to involve increased collaboration between nations and private companies, driving mutual benefits and innovation. However, this cooperation must address challenges such as managing space debris and preventing the militarisation of space.

Sangeet Kumar Sanu

BW Reporters Sangeet Kumar Sanu as a Correspondent reports on Defence, Space and Foreign Affairs for BW since 2022.