Wed Mar 12 15:49:31 UTC 2025: ## India’s Space Ambitions Hampered by Regulatory Gaps, Report Reveals

**New Delhi, India** – India’s burgeoning space sector, while experiencing rapid growth, faces significant hurdles due to a lack of comprehensive legal framework and insufficient funding, according to a new report released Wednesday. The study, “Unlocking India’s Space Economy,” a joint effort by EY and FICCI, highlights the need for a dedicated Space Activities Act to address regulatory gaps and streamline decision-making.

Currently, India holds a mere 2% of the global space market ($8.4 billion), significantly lagging behind China (13%, $80 billion) and the US (40%, $250 billion). While the government aims to expand the Indian space economy to $44 billion by 2033, the report emphasizes that achieving this target requires addressing several key challenges.

These challenges include a heavy reliance on imported components, limited launch sites (currently only Sriharikota, with a second site years away), and insufficient funding. The report reveals that India invests only 0.07% of its GDP on space, compared to the US’s 0.28%, resulting in significantly lower returns despite the potential for higher growth.

Despite these challenges, the sector is experiencing a significant shift towards a commercially driven model. The report projects substantial growth in satellite communication ($14.8 billion by 2033) and Earth observation ($8 billion by 2033), with applications across various sectors, including agriculture and disaster management. Over 250 private space startups are actively contributing to this growth alongside the Indian Space Research Organisation (ISRO).

Dr. Pawan Kumar Goenka, Chairman of InSpace, announced that investment in the space sector could exceed Rs 50,000 crore (approximately $6 billion USD) in the next decade, with plans for 52 new surveillance satellites (31 built by the private sector) and 60 units of the Launch Vehicle Mark-3. The government is also investing Rs 35,000 crore in ISRO’s Gaganyaan and space station programs.

While a new space activities bill is in the works, the report’s authors urge for swift action to match India’s ambitious goals with concrete progress. The absence of a comprehensive legal framework and adequate funding remain significant obstacles to realizing India’s full potential in the rapidly expanding global space economy.

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