According to a report by CII and KPMG, India's space sector is projected to surge from USD 8.4 billion in 2022 to USD 44 billion by 2033, fueled by satellite-enabled services and exports.
- This expansion is expected to increase India's share of the global space economy from approximately 2% to 8% by 2033.
Key Trends according to report:
- Shifting of Primary focus in space services: Towards monetizing downstream services such as Earth Observation (EO), Satellite Communication, and Navigation.
- These services are increasingly integrated across sectors i.e. telecommunication, agriculture, disaster management, urban planning, infrastructure monitoring etc.
- Key drivers and enablers of Space Economy: Growing private sector (Nearly 200 startups driving innovation), Institutional reforms (E.g. Indian National Space Promotion and Authorization Centre (IN-SPACe) consolidating demand), linking of space-based inputs with governance platforms (e.g. Bhoonidhi portal) etc.
- Challenges for Space Economy:
- Limited Global Reach: e.g. NavIC's current regional architecture restricts its international usability.
- Underdeveloped commercial markets for EO data: Due to low enterprise awareness, limited innovation, and fragmented market demand
- Limited Private Sector Participation: Due to high capital requirements, long incubation periods, and uncertain regulatory frameworks.
- Skilled workforce shortage: Due to skills mismatch, Brain Drain etc.
- Tax and Regulatory Uncertainty: Tax ambiguities regarding GST, digital taxation, and Public-Private Partnership (PPP) revenue sharing pose structural hurdles to scaling EO delivery models.
- Other: Security and strategic concern, increase in space debris with growing space economy, etc.
Initiatives Undertaken for Development of Space Economy:
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