Space sector contributed ₹20000 crore to India's GDP over the last decade

Highlights:

• India's space sector has made significant contributions to the country's economy over the last decade, adding approximately $24 billion (₹20,000 crore) to India's GDP and supporting around 96,000 jobs in both public and private sectors.
• These figures were presented by Steve Bochinger, an Affiliate Executive Advisor at Novaspace, during the National Space Day celebrations in New Delhi on August 23, 2024, marking the first anniversary of the Chandrayaan-3 mission's successful landing.
• The findings, part of a report initiated by the Indian Space Research Organisation (ISRO) and conducted by the Indian economics research firm econONE in collaboration with Novaspace, highlight the socio-economic impact of the space sector in India from 2014 to 2023.
• The report underscores that every dollar generated by the space sector has had a multiplier effect of $2.54 on the Indian economy. Additionally, India's space workforce has been found to be 2.5 times more productive than the broader industrial workforce.
• India's space economy has diversified significantly, with the number of companies in the sector growing to 700, including 200 startups.
• The space sector's revenue reached $6.3 billion in 2023, representing about 1.5% of the global space market. Satellite communications emerged as the largest contributor, making up 54% of the space economy, followed by navigation (26%) and launches (11%).
• The primary industries benefiting from the space sector include telecommunications (25%), information technology (10%), and administrative services (7%).
• However, the report also notes that while India's progress in space has bolstered national prestige, sovereignty, and international leadership, it has yet to significantly enhance the profitability and competitiveness of companies within the sector.
• This is partly attributed to the space program being driven by political considerations over the past decade. Nonetheless, a shift towards prioritizing commercial space activities is expected, with regulatory reforms poised to unlock further potential.

Prelims Takeaways:

• National Space Day