Insider Brief
- India’s space economy is expanding beyond satellite launches to drive job creation, innovation and digital access, with potential to grow fivefold over the next decade, according to a May 2025 study.
- The sector employs around 22,000 people across ISRO, public-private enterprises, and startups, with private space companies increasing from 11 in 2019 to over 400 in 2024.
- Space applications now account for 75% of the sector’s value, supporting services in agriculture, disaster management, rural connectivity, and climate monitoring.
India’s space sector is doing more than launching satellites — it’s quietly reshaping the national economy, creating jobs, driving innovation and expanding digital services to underserved regions, according to a new study. And if current trends continue, the country’s space economy could grow fivefold in the next decade, added the research team, which included Sunil Mani, Trivandrum and Ahmedabad University; V.K. Dadhwal,
National Institute of Advanced Studies and C.S. Shaijumon, Indian Institute of Space Science and Technology.
The paper offers a detailed assessment of India’s space economy. Drawing on over a decade of data and applying a structured impact framework, the authors estimate that India’s space sector now directly employs approximately 22,000 people and generates revenues exceeding ₹2940 crore ($354 million) annually, based on figures from NSIL, ISRO’s commercial arm. The findings, reported in an in-press edition of Space Policy, show that space activities — once confined to launch pads and labs — now influence agriculture, healthcare, disaster management, and rural development across the country.
A Multi-Layered Sector With Broad Economic Reach
The study defines India’s space economy in three segments: space manufacturing, operations and applications.
- Manufacturing includes the production of launch vehicles and satellite components.
- Operations cover launch services and ground control.
- Applications span services like satellite communications, remote sensing and navigation.
Space applications account for the largest share, comprising nearly 75% of the total space economy. This includes everything from Direct-to-Home (DTH) satellite television to satellite-based weather forecasting and rural connectivity. These technologies now support large-scale programs in agriculture, education, urban planning and natural resource management.
The Indian Space Research Organisation (ISRO) remains the central player in the ecosystem, the researchers report. But the study finds that private sector involvement is accelerating, supported by policy changes like the Indian Space Policy 2023 and the creation of the Indian National Space Promotion and Authorization Centre (IN-SPACe). These reforms have opened the door for non-governmental entities to participate in space activities, from satellite manufacturing to data services.
Job Growth Shifts from Government to Private Sector
Employment patterns underscore this shift. While ISRO’s workforce has declined slightly — dropping by about 1.2% annually since 2012 — the share of scientific staff has grown, and new job creation is now concentrated in startups and private firms. The number of private space companies jumped from just 11 in 2019 to over 400 by 2024, including 229 active startups, according to the study, and the average space startup employs around 11 people.
Privatization is a national and international trend, the researchers point out.
“This trend reflects a broader governmental policy shift towards the privatization of the space sector,” the researchers write. “The reduction in public sector employment in the space industry is part of a global trend where governments are increasingly relying on the private sector to drive innovation and efficiency. For instance, the U.S. private space workforce grew by 4.8 % in 2023, indicating a robust expansion in commercial space activities, particularly in launch-related hiring.”
The sector’s job creation extends beyond engineering and rocket science. Remote sensing data supports government programs in forestry, urban planning, groundwater management, and even rural land titling through schemes like Gati Shakti and SVAMITVA. The result is a growing demand for geospatial analysts, software developers, and digital services providers.
The study estimates that employment in public and private enterprises linked to ISRO totals over 3,000 people, with an additional 2,500 jobs found in space startups. Jobs are also being created in educational programs aligned with space sciences, with over 100 universities now offering degrees in geoinformatics, remote sensing, or aerospace engineering.
Revenue on the Rise, but Budget Fluctuations Persist
India’s space economy generated new revenue streams across commercial launches, satellite services and exports, according to the study. ISRO’s commercial arm, NewSpace India Limited (NSIL), reported ₹2940 crore in revenue in 2022–23. The sector has experienced an average annual revenue growth of 24% over the past several years, despite budget volatility.
The study notes that ISRO’s budget saw a significant drop in 2020–21 — falling by 27% in real terms — and again in 2022–23. Still, India’s space economy was valued at approximately ₹38,700 crore in 2020–21, representing 0.2% of national GDP. That translates to roughly 1.11% of the global space economy, which was estimated at $447 billion.
Recent policy developments aim to reverse the trend of budget contraction. The 2024–25 Union Budget includes a ₹1000 crore venture capital fund to support private space enterprises, with the explicit goal of expanding the space economy fivefold over the next 10 years.
Efficiency and Social Inclusion: The Hidden Value
The study highlights how space technologies are creating efficiencies across a range of industries, as well as driving some hidden benefits. Satellite imagery has enabled precision farming, better logistics and more accurate weather forecasting, helping farmers avoid crop losses and improving fleet management for transportation companies.
The impact on social inclusion may be one of those hidden benefits. Satellite communications have expanded tele-education, telemedicine, and mobile banking services in rural areas. The Bhuvan geoportal, developed by ISRO, supports disaster response, forest monitoring, and even the tracking of rural infrastructure built under India’s national employment guarantee scheme.
Meanwhile, NavIC, India’s regional satellite navigation system, is being integrated into drones, maritime navigation, Aadhaar enrollment systems, and fleet tracking services. Both platforms are seen as key to bridging digital and development divides between urban and rural India.
The ripple effects of India’s space investments are being felt in fields far from launchpads. ISRO has transferred over 535 technologies to around 235 industries, including materials used in consumer products, medical devices, and water purification systems.
Environmental monitoring also benefits from satellite data. Applications include forest cover mapping, groundwater tracking, and urban heat assessment. Space-based tools now support India’s efforts in climate adaptation and sustainability, contributing to national goals in resource management and disaster resilience.
The study points to the growing role of space-derived data in eco-innovation — such as using satellite inputs for solar and wind energy assessments — and notes that these capabilities may help India meet its renewable energy targets more efficiently.
Methods and Framework
The researchers adopt an analytical model that segments the space economy’s impacts into six categories: job creation, new revenue, efficiency, cost avoidance, social inclusion and environmental outcomes. This framework is adapted from OECD and UK Space Agency methodologies and aligns with global best practices for measuring the spillover effects of high-tech industries.
Data sources include ISRO annual reports, government budget documents, industry surveys, and startup funding data compiled from Indian and international sources. The study also integrates information from sector-specific schemes in infrastructure, digital services, and rural development.
Limitations and Need for Better Data
The study offers a comprehensive view of India’s space economy, however the authors acknowledge the need for better data quality and sector granularity. Much of the current employment and revenue estimation relies on proportional allocation and indirect indicators. The lack of satellite accounts dedicated to space-related output means many impacts are likely undercounted.
There is also limited visibility into indirect employment effects and the long-term returns on investment. For example, while geospatial services and DTH broadcasting clearly benefit from ISRO’s satellite infrastructure, the economic ripple effects in sectors like e-commerce or fintech remain poorly measured.
Future Directions and Policy Recommendations
The authors call for expanded data collection and improved metrics to track the space sector’s growth. They recommend the creation of formal economic models and satellite accounts to measure direct, indirect, and induced effects. They also suggest more robust benchmarking against global peers and caution against over-reliance on descriptive or promotional assessments.
To sustain growth, the study emphasizes the need for an enabling policy environment that nurtures public-private partnerships, lowers barriers for startups, and ensures consistent funding. Government support, while still central, should focus on regulatory facilitation and demand aggregation, allowing private firms to scale technologies developed with public investment.
The researchers suggest that India’s space economy is not only a source of national pride — it’s an emerging pillar of economic resilience, innovation and inclusive growth. With the right policies and data infrastructure, the country could solidify its position as a competitive, cost-effective and socially impactful space power.
The team writes: “The paper concludes that India’s space economy, while currently modest in scale, has a disproportionately large developmental impact. As public and private investments grow, these impacts are expected to deepen and diversify, reinforcing the strategic and economic relevance of space as a driver of India’s inclusive growth and technological progress.”
Space Insider Market Intelligence Platform provides a continuously updated analysis of this rapidly evolving sector. Read about our latest Indian Space Tech Market Map here.
Matt Swayne
With a several-decades long background in journalism and communications, Matt Swayne has worked as a science communicator for an R1 university for more than 12 years, specializing in translating high tech and deep tech for the general audience. He has served as a writer, editor and analyst at The Space Impulse since its inception. In addition to his service as a science communicator, Matt also develops courses to improve the media and communications skills of scientists and has taught courses.
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