According to a report by CII and KPMG, India's space sector is projected to surge from USD 8.4 billion in 2022 to USD 44 billion by 2033, fueled by satellite-enabled services and exports.

• This expansion is expected to increase India's share of the global space economy from approximately 2% to 8% by 2033.

Key Trends according to report: 

• Shifting of Primary focus in space services: Towards monetizing downstream services such as Earth Observation (EO), Satellite Communication, and Navigation. 
  • These services are increasingly integrated across sectors i.e. telecommunication, agriculture, disaster management, urban planning, infrastructure monitoring etc.
• Key drivers and enablers of Space Economy: Growing private sector (Nearly 200 startups driving innovation), Institutional reforms (E.g. Indian National Space Promotion and Authorization Centre (IN-SPACe) consolidating demand), linking of space-based inputs with governance platforms (e.g. Bhoonidhi portal) etc.
• Challenges for Space Economy: 
  • Limited Global Reach: e.g. NavIC's current regional architecture restricts its international usability.
  • Underdeveloped commercial markets for EO data: Due to low enterprise awareness, limited innovation, and fragmented market demand
  • Limited Private Sector Participation: Due to high capital requirements, long incubation periods, and uncertain regulatory frameworks.
  • Skilled workforce shortage: Due to skills mismatch, Brain Drain etc.
  • Tax and Regulatory Uncertainty: Tax ambiguities regarding GST, digital taxation, and Public-Private Partnership (PPP) revenue sharing pose structural hurdles to scaling EO delivery models.
  • Other: Security and strategic concern, increase in space debris with growing space economy, etc.