How Bharat is Building USD 45bn Space Economy: Commercial ventures, frontier projects & self-reliance fuels the mission

The projected fivefold growth in India's space economy stems from a policy shift initiated in 2019-2020, which opened the sector to private participation. Previously, the Indian Space Research Organisation (ISRO) solely managed the national program. This reform led to the creation of entities like IN-SPACe to promote non-government players and NewSpace India Limited to handle ISRO’s commercial activities, fostering an environment where public and private entities collaborate.

This transition aims to build globally competitive companies, moving beyond merely demonstrating technical capability. Early results include Skyroot Aerospace’s Vikram-S, the first privately developed Indian rocket, and Agnikul Cosmos launching from its own private pad. These outcomes, achieved within five to six years, highlight the rapid pace of development in an industry known for long gestation periods, while flagship missions like Chandrayaan-3 and Aditya-L1 build commercial credibility.

The government is generating demand by acting as an anchor customer for proof-of-concept projects, allowing young firms to test technologies. This approach aims to validate products, attract investment, and ensure a steady customer base. Regulatory reforms, including streamlined approval processes and GST measures for space products, are intended to lower business costs and enhance competitive pricing for Indian firms. The emphasis is on creating predictable demand, efficient processes, and clear growth paths to attract investors.