{"id":28238,"date":"2024-08-24T17:53:33","date_gmt":"2024-08-24T12:23:33","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=28238"},"modified":"2025-07-12T15:35:20","modified_gmt":"2025-07-12T10:05:20","slug":"contribution-of-space-sector-to-indias-gdp","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/24-08-2024\/contribution-of-space-sector-to-indias-gdp","title":{"rendered":"Contribution of Space Sector to India\u2019s GDP"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s space sector has directly contributed about $24 billion (\u20b920,000 crore) to India\u2019s Gross Domestic Product over the last decade.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Space Sector of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s space sector has benefitted from decades of consistent investment, with <strong>$13 billion<\/strong> invested in the last decade.\n<ul class=\"wp-block-list\">\n<li>It is the <strong>8th largest space economy <\/strong>(in terms of funding) in the world.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In the recently announced Union Budget for <strong>2024-25,<\/strong> India\u2019s space sector received a significant boost. The Central government allocated<strong> \u20b913,042.75 crore <\/strong>to support space-related initiatives.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Contribution of Space Sector to India\u2019s GDP<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Sector has supported <strong>96,000 jobs<\/strong> in the public and private sector.&nbsp;<\/li>\n\n\n\n<li>For every dollar produced by the space sector, there was a <strong>multiplier effect of $2.54 <\/strong>to the Indian economy and India\u2019s space force was <strong>2.5 times more productive<\/strong> than the country\u2019s broader industrial workforce.<\/li>\n\n\n\n<li>The Indian space sector was diversifying and now had 700 companies including <strong>200 start-ups<\/strong> and had seen revenues <strong>grow to $6.3 billion in 2023<\/strong>, which was about <strong>1.5% <\/strong>of the global space market.<\/li>\n\n\n\n<li><strong>Satellite communications <\/strong>contributed <strong>54% to the space economy,<\/strong> followed by <strong>navigation (26%)<\/strong> and launches (11%).\n<ul class=\"wp-block-list\">\n<li>The main industries supported by the space sector were <strong>telecom (25%)<\/strong>, <strong>information technology (10%)<\/strong> and <strong>administrative services (7%)<\/strong><strong>.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>FDI in space sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Under the amended FDI policy, <strong>100% FDI is allowed <\/strong>in the space sector. The entry route for the various activities are as follows:\n<ul class=\"wp-block-list\">\n<li><strong>Up to 74% under Automatic route:<\/strong> Satellites-Manufacturing &amp; Operation, Satellite Data Products and Ground Segment &amp; User Segment.&nbsp;<\/li>\n\n\n\n<li><strong>Up to 49% under Automatic route: <\/strong>Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft.<\/li>\n\n\n\n<li><strong>Up to 100% under Automatic route: <\/strong>Manufacturing of components and systems\/ sub-systems for satellites, ground segment and user segment.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Potential of Space Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Export Potential and Investment: <\/strong>Currently, India\u2019s export market share in space-related services stands at \u20b92,400 crore (about $0.3 billion). The goal is to boost this to \u20b988,000 crore ($11 billion).<\/li>\n\n\n\n<li><strong>Rise of Space Tourism: <\/strong>In 2023, the space tourism market was valued at $848.28 million.\n<ul class=\"wp-block-list\">\n<li>It is expected to grow to <strong>$27,861.99 million by 2032.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in India\u2019s Space Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Competition and Global Market Share: <\/strong>To achieve this ambitious goal of 8% of the global market share, Indian space companies must compete effectively on the international stage.&nbsp;<\/li>\n\n\n\n<li><strong>Private Sector Participation:<\/strong> While the private sector has shown interest, there\u2019s a need for more substantial investment and commitment.<\/li>\n\n\n\n<li><strong>Technology Development and Innovation:<\/strong> Developing cutting-edge technologies, such as reusable launch vehicles, miniaturized satellites, and advanced propulsion systems, requires substantial investment and research.&nbsp;<\/li>\n\n\n\n<li><strong>Regulatory Framework and Licensing:<\/strong> Navigating licensing processes, export controls, and compliance can be complex.&nbsp;<\/li>\n\n\n\n<li><strong>Infrastructure and Facilities: <\/strong>Developing and maintaining such infrastructure requires significant capital.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major Reforms In Space Sector of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Indian Space Policy 2023:<\/strong> It laid down roles and responsibilities of organizations such as ISRO, New Space India Limited (NSIL) and private sector entities.\n<ul class=\"wp-block-list\">\n<li>It aims to enhance the participation of research, academia, startups and industry.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Strategic Proposals by SIA:<\/strong> The Space Industry Association \u2013 India (SIA-India) in its Pre-Budget Memorandum for the <strong>FY 2024-25 <\/strong>has proposed a substantial increase in India\u2019s space budget.\n<ul class=\"wp-block-list\">\n<li>It aims to support India\u2019s expanding space program, foster private sector involvement, drive technological advancements, and position the nation as a key player in the dynamic global space ecosystem.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India aims to commission the <strong>Bharatiya Antariksha Station (BAS) by 2035<\/strong> and land Indian astronauts on the Moon by 2040.<\/li>\n\n\n\n<li>Private entities are now actively involved in crucial aspects of research, manufacturing, and fabrication of rockets and satellites, fostering a vibrant ecosystem of innovation.&nbsp; It is expected to integrate Indian companies into global value chains.&nbsp;<\/li>\n\n\n\n<li>With this, companies will be able to set up their manufacturing facilities within the country duly encouraging &#8216;Make In India (MII)&#8217; and &#8216;Atmanirbhar Bharat&#8217; initiatives of the Government.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: TH<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s space sector has directly contributed about $24 billion (\u20b920,000 crore) to India\u2019s Gross Domestic Product over the last decade.\u00a0<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-28238","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/28238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=28238"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/28238\/revisions"}],"predecessor-version":[{"id":28360,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/28238\/revisions\/28360"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=28238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=28238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=28238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}