Context: A joint study by Centre for Development Studies (CDS) and Indian Institute of Space Science and Technology (IIST) scientifically measured the size of Indian space economy.
About Space Economy

• The global space industry includes the industry's core activities in-space manufacturing and satellite operations.
• The main segments of the space economy include manufacturing, services from satellite operators and consumer services. 

Key findings of the study

• India's space economy has evolved, accounting for about 0.23% of the GDP.
• Decline in the budget for space-related activities, leading to a reduction in the size of the economy.
• The budget outlay has considerable influence on the dynamics of the space economy.
• India's spending is more than that of China, Germany, Italy and Japan, but less than the U.S. and Russia.

Significance of this sector

• The CDS-IIST research project has coincided with the new Central government policies opening up the sector to private players.
• The policy is very likely to enlarge the size of the sector through enhanced private investment and improved integration with the global private space industry.
• 47 Out Of 100 Space Startups In 2021: The economic survey released in 2022 showed how the number of startups in the space industry has almost doubled in the last year. Nearly 47 of the total 100 space startups in India were started in 2021, which is 21 up from 2020.
• The increasing instances of public-private partnerships contribute extensively to the outcomes because they contribute space-related outputs, space derived products and services and the scientific knowledge arising from space research.

Government initiatives to boost space sector

Establishment of NewSpace India Limited (NSIL) for NGPEs (Non-government/private entities)

• Aim: To act as the promoter and regulator of space activities in India by non-government and private entities.

Formation of the Indian National Space Promotion and Authorisation Centre (IN-SPACe)

• Aim: to help private players become independent actors instead of being solely vendors or suppliers.

Atal Tinkering Lab (ATL) space challenge as part of the Atal Innovation Mission

• Aim: To boost participation of young people and students in the Indian space sector.

Revising the Foreign Direct Investment (FDI) policy to open investment opportunities for foreign companies.
Establishment of the Indian Space Association (ISpA)

• Aim: To help private players carry out independent space activities, facilitate services and technology developed by ISRO to be utilised in the private sector, provide regulatory and policy inputs and support start-ups, MSMEs and academia.

Atal Incubation Centre (AIC) scheme

• Aim: To support startups working in space technology and related industries across India.