India's Space Economy To Reach $44 Billion By 2033: Report

India's space ecosystem is undergoing a dramatic transformation, evolving from a government-led frontier to a vibrant, innovation-driven industry. India's space sector is also evolving into pillar of national development and good smart governance.

At the prestigious CII International Conference on Space 2025 held in Bengaluru this week, KPMG in India, in collaboration with the Confederation of Indian Industry (CII), released a landmark report titled "Propelling India into a New Era of Space and Innovation." The report outlines India's aspirations to capture 8% of the global space economy by 2035, translating into a $44 billion market share by 2033.

Speaking exclusively to NDTV, Nipun Agarwal, Head of Defence and Aerospace at KPMG, emphasised the scale of the opportunity. "The report says that within 10 years, the global space economy will be around $1.8 trillion, which is Rs 155 lakh crores," he said. "India aspires to grab almost 8% of market share from this large space economy at the global stage. As per the Decadal Vision published by Indian National Space Promotion and Authorization Centre or INSPACe, we are aspiring to be a $44 billion space economy by 2033."

The excitement around India's space journey is palpable.

Currently, India holds approximately 2% of the global space market. The leap to 8% will require coordinated efforts across policy, industry, and academia. The KPMG-CII report identifies three critical enablers for this transformation: technological innovation, market creation, and a favourable policy environment.

"In order for any technical sector like space to move forward, you need a few things," Nipun Agarwal explained. "One is technological innovation, which is happening a lot in today's start up ecosystem. Second, you need a market for them to sell their products and affordability in the user segment to buy those products. Third, you need a favourable policy environment. Thanks to the Government of India, they are trying to create that. Organisations like IN-SPACe have created single-window clearance systems and are improving ease of doing business."

The report positions space-based services-particularly Earth Observation (EO), Satellite Communication (SatCom), and Navigation (PNT)-as essential tools for governance, economic growth, and national security. These technologies are already being integrated into flagship missions such as PM Gati Shakti and Ayushman Bharat, and are expected to become default infrastructure across public service delivery.

Digital Public Infrastructure (DPI) is highlighted as a backbone for this integration. Platforms like Bhuvan NextGen, BharatNet, and the National Geospatial Data Registry (NGDR) are enabling seamless connectivity between space-based data and governance workflows. The report also calls for platform interoperability, SatCom-based redundancy for disaster-prone regions, and open data standards to scale adoption.

When asked whether the absence of a formal space law is hindering industry growth, Nipun Agarwal was unequivocal. "Space law is just an enabler. It creates a smooth roadmap for companies to operate. But companies don't stop themselves just because the law is not there. They are eager to innovate, move forward in technology terms, and contribute to the Indian economy. So yes, law will enable them, but it is not becoming a roadblock."

The excitement around India's space journey is palpable. From being a domain dominated by ISRO, the sector now includes a thriving ecosystem of start ups and private companies. "I am not just excited about the space sector," Nipun Agarwal said. "I am excited about the kind of participation various start ups and companies are making. They are creating applications and technologies that will touch the general mass and improve lives. Every Indian should be excited. We are thinking about landing on the Moon, human missions, and creating our own space station."

The KPMG-CII report also emphasises the need for institutional capacity building, innovative financing models, and dedicated Space Adoption Units (SAUs) to coordinate efforts across ministries and departments. Strategic segments such as defence, disaster response, and governance are expected to set benchmarks for mission-grade applications, while international collaborations will position India as both a contributor and a regional enabler.

Gaurav Mehndiratta, Partner and National Head - Aerospace, Defence and Space at KPMG in India, summed up the sentiment: "India stands at a pivotal juncture in its space journey. The foundations built over decades are now enabling a leap towards scale, integration, and global leadership. Realising this potential will require coordinated action across policy, industry, and academia to foster innovation, build resilient infrastructure, and connect space capabilities with diverse user communities."

As India charts its course toward becoming a Viksit Bharat by 2047, space technology is emerging as a powerful tool for governance and transformation. Reports like this not only provide a roadmap but also energize the ecosystem, offering clarity and confidence to stakeholders across the spectrum.