Wed May 07 13:16:19 UTC 2025: ## India’s Booming Space Economy Needs Evidence-Based Policies, New Study Says
**Thiruvananthapuram, May 7, 2025** – A new study published in *Space Policy* reveals India’s rapidly expanding space economy, urging the government to adopt evidence-based policies to support its continued growth. The research, titled “Space economy of India, its impact on the rest of the economy,” highlights the significant transformation driven by increased private sector involvement.
The number of private space companies in India has skyrocketed from 11 in 2019 to over 400 in 2024, with funding reaching $124.7 million in 2023, a substantial increase from $67.2 million in 2021. This surge has created a significant demand for skilled professionals, particularly in areas like spacecraft design and space policy.
The study, conducted by researchers from the Centre for Development Studies, the National Institute of Advanced Studies, and the Indian Institute of Space Science and Technology, estimates India’s space economy at approximately ₹38,700 crore (approximately $4.7 billion USD) in 2020-21, representing 0.20% of the GDP. While seemingly modest, the researchers emphasize its disproportionately large developmental and socioeconomic impact, projected to deepen with continued public and private investment.
The authors advocate for updated and comprehensive analyses to inform future policies and maintain India’s competitive position in the global space sector. They stress the need for supportive regulations and enabling environments to foster private sector participation, public-private partnerships, and innovation. The findings are particularly relevant given the Indian government’s recent initiatives to open up the space sector and the introduction of the Indian Space Policy 2023. The study concludes that a robust space sector is crucial for driving India’s inclusive growth and technological progress.
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