India's Space Economy To Be Worth Nearly $13 Billion By 2025, Says Indian Space Association: Report

India¡¯s space economy is set to grow to nearly $13 billion by the year 2025, jumping from the $9.6 billion mark of 2020, at a CAGR of 6%, a new report by the Indian Space Association (ISpA) and EY shows.

India's Space Economy To Be Worth Nearly $13 Billion By 2025

The inclusion of private players in the space sector and increased demand for geospatial data has given a boost to the Indian space economy. The satellite services and applications segment is likely to form the largest share of the space economy accounting for 36% by 2025.

And a greater demand for high bandwidth and lower latency data requirements, an increase in IoT (Internet of Things) and autonomous systems, and demand for military and defence satellite communication solutions are giving a leg up to this segment, the report noted, as per TOI.

Twitter/ISRO

The fastest rate of growth, however, is expected in the space launch segment, at a CAGR of 13%, spurred by growing private participation, evolving technology in this field, and reducing costs of launch services.

ISRO is also reportedly showing interest in the small satellite market as it is building a small rocket with a capacity to transport satellites 500 kg-700 kg to low Earth orbit.

Also, India fares well in terms of the number of space tech companies. The report mentioned that India had a total of 368 space tech companies in May 2021, occupying fifth position globally after the US, UK, Canada and Germany in that order. This has been largely fuelled by the role of private equity and venture capital investments in recent years.

The report calls 2021 as a ¡°watershed year¡± for space-tech startups in India with private investments reaching $68 million, a 196% YoY (year on year) increase, taking the total number of space-tech startups in India to over 100.

Also Read: IMF Chief Calls India A 'Bright Spot' In The Global Economy

Indian Economy To Touch $20 Trillion By 2047

In the year our country completes 100 years of independence, its economy can reach the USD 20 trillion mark as well. This is as per EAC-PM (Economic Advisory Council to the Prime Minister) Chairman Bibek Debroy who had said in August 2022, ¡°India can become an upper-middle-income country by 2047 if it manages to achieve a sustained growth rate of 7-7.5% for the next 25 years. The country can become a $20 trillion economy by 2047 at this growth rate.¡± Click here to know more about this.

For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here.