Economic Survey: Startups, launch services to drive India's space economy to $44 billion

India's space sector is undergoing a transformative shift, moving from a predominantly government-run initiative to a vibrant commercial services landscape. According to the Economic Survey for 2025-26, the nation's space economy is currently estimated at $8.4 billion, which represents about 2% of the global market. However, projections indicate a dramatic expansion to $44 billion over the next ten years, fueled by advancements in satellite communications, Earth observation, navigation, and a burgeoning private sector. The Economic Survey highlights the rise of commercial launch services, which are becoming a significant source of revenue through exports. From 2015 to 2024, India successfully launched 393 foreign satellites for 34 different countries, generating revenues close to $143 million and €272 million. India's reputation for providing reliable and cost-effective launch services has positioned it favorably to meet the increasing global demand for small satellite deployments. Moreover, the downstream services sector is experiencing rapid growth. The market for satellite data services in India was valued at $495 million in 2024, driven by diverse applications across defense, climate monitoring, logistics, and urban planning. The Economic Survey attributes this growth to recent policy reforms. The introduction of the Indian Space Policy 2023, the operationalization of the regulatory body IN-SPACe, and more flexible foreign direct investment regulations have significantly lowered the barriers to entry for private players. These reforms are enabling a shift towards a mixed public-private model, positioning space as a high-value, export-oriented services industry instead of merely a strategic asset. The commercial leasing of satellite transponders, international sales of Earth-observation data, and the increasing adoption of India's NavIC navigation system are creating new pathways for revenue generation. Additionally, the Survey identifies opportunities in Earth-system data integration, which combines atmospheric, oceanic, and geospatial information, marking a promising frontier for climate services and disaster management.