Propelling India into a New Era of Space and Innovation is a thought leadership report that examines the transformation of India’s space sector at a pivotal juncture in its growth. The report highlights how the global space economy, valued at USD596 billion in 2024 and projected to exceed USD1.8 trillion by 2035, creates unprecedented opportunities for India to expand its share from the current nearly 2 per cent to nearly 8 per cent in the coming decade. This growth trajectory is enabled by India’s strengths in cost-efficient launch systems, proven satellite manufacturing, and, most critically, the operationalisation of downstream services that embed space-based capabilities into governance, security, resilience, and national development.

      The report underscores that India’s space economy is moving beyond an innovation-led frontier towards becoming a foundational pillar of governance and growth. It focuses on three critical downstream domains that are, Earth Observation (EO), Satellite Communication (SatCom), and Navigation (PNT), which are increasingly integrated into national missions such as PM Gati Shakti, Ayushman Bharat, and disaster management programmes. EO delivers actionable insights for agriculture, urban planning, border security, and environmental monitoring. SatCom enables connectivity for broadcasting, rural broadband, enterprise networks, and secure defence communication. PNT, through NavIC and GAGAN, provides sovereign positioning, navigation, and timing solutions that support logistics, telecom, financial systems, and strategic military operations.

      The report emphasises on the role of Digital Public Infrastructure (DPI) as the backbone for scaling adoption. By linking space-derived inputs with governance platforms, financial systems, and user applications, DPI can ensures that EO, SatCom, and PNT are embedded seamlessly into workflows. The report also stresses the importance of platform interoperability, outcome-based procurement, innovative financing, and institutional capacity building as enablers to move from fragmented adoption toward structured, service-oriented delivery.

      Strategic domains such as defence, disaster management, and governance are highlighted as anchors for mission-grade adoption, setting benchmarks that other sectors can follow. Defence relies on low-latency Earth Observation pipelines, resilient SatCom networks, and secure navigation services. Disaster management depends on space-based monitoring for early warning, coordination, and continuity of services in crisis zones. Governance applications draw on EO and PNT to enhance infrastructure planning, citizen services, and national resilience.


      Key highlights of the report include:

      • Global opportunity at scale

        The space economy is projected to grow from USD 596B in 2024 to over USD 1.8T by 2035, at nearly 9 per cent CAGR, a trajectory that positions India to expand its global role

      • India’s Expanding Role

        From a current ~2 per cent share, India is positioned to capture ~8 percent by the next decade through reforms, private participation, and mission-grade adoption of services

      • Upstream strength, downstream leverage

        India’s cost-efficient launch systems and proven satellite manufacturing are set to enable a transition to structured and service-oriented models

      • Earth observation for impact

        High-resolution EO, SAR, and multispectral satellites provide actionable inputs for defence surveillance, agriculture, disaster resilience, and smart infrastructure

      • SatCom for connectivity & security

        INSAT/GSAT and high-throughput satellites are set to expand applications in rural broadband, broadcasting, and enterprise services, while ensuring secure communications for defence and governance

      • NavIC for sovereign positioning

        NavIC and GAGAN to scale the indigenous PNT solutions, underpinning logistics, mobility, telecom, financial systems, and strategic military requirements

      • From fragmented to systematic adoption

        The downstream ecosystem is shifting toward structured delivery, embedding space services into Digital Public Infrastructure and governance workflows

      • Enablers of scale

        Growth is anchored in demand aggregation, interoperability standards, outcome-based procurement, innovative financing, and capacity building at institutional levels

      • Strategic domains lead adoption

        Defence, disaster response, and governance provide benchmark use cases for secure, interoperable, and mission-ready downstream space services while international collaboration positions India as both a contributor and regional enabler

      • India’s trajectory forward

        By operationalising downstream, India is transitioning from innovation-led progress to a foundational pillar of resilience, development, and strategic advantage in the global space economy


      The report concludes that India’s downstream space ecosystem is no longer limited to isolated innovation but is evolving into a foundational pillar of national development and strategic advantage. Operationalising downstream services will determine India’s ability to scale adoption, expand its global share, and reinforce its credibility as a trusted spacefaring nation. By aligning policy with mission needs, building institutional maturity, and fostering collaboration across government, industry, and academia, India can secure its trajectory in the international space economy and contribute meaningfully to its future contours.

      This report provides policymakers, industry leaders, and stakeholders with a roadmap to unlock the full potential of India’s space sector. By combining technical capability, service-oriented models, and strategic adoption, India is positioned not only to meet domestic requirements but also to shape its role in the global space economy of the coming decades.

      Propelling India into a new era of space and innovation

      Operationalising space based services to drive innovation, governance, enhance resilience and foster growth in India’s evolving space economy

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      Key Contact

      Gaurav Mehndiratta

      Partner and National Head, Corporate and International Tax

      KPMG in India

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