Picture Source: ISRO Official
India’s space sector has demonstrated a significant return on investment, with every dollar generated through the industry contributing an additional $2.54 to the national economy, according to a preliminary report titled “Socio-Economic Impact Analysis of Indian Space Programme,” released on August 23.
The study, conducted by Econ One and Euroconsult and commissioned by the Indian Space Research Organisation (ISRO), was unveiled during the National Space Day celebrations in New Delhi.
Economic Contributions
The report reveals that the Indian space sector has added $60 billion to the country’s GDP over the last decade through direct, indirect, and induced effects. Steve Bochinger, an affiliate executive advisor of Euroconsult, emphasized the multiplier effect, stating, “For every dollar produced, not spent, there is an additional $2.54 that has been generated for the national economy.”
The space program, led by ISRO, has gained international recognition for its cost-effective yet successful missions. For instance, the Mars Orbiter Mission (Mangalyaan) cost approximately $74 million, a fraction of what other nations spend on similar ventures.
Job Creation and Social Impact
Beyond its economic impact, the Indian space program has also supported significant employment, creating over 4.7 million jobs in the country. The report estimates that 96,000 of these jobs are directly tied to the space sector, both in public and private entities.
The study also highlights the social contributions of the space program, noting its role in enhancing national prestige, sovereignty, and international leadership. However, it pointed out that the sector’s impact on competitiveness and market access has been relatively low, a trend that is expected to shift with increased collaboration and public-private partnerships.
Addressing Challenges and Future Prospects
Despite its successes, the Indian space sector faces several challenges, including regulatory, financial, and infrastructural hurdles. Bochinger noted that while regulatory reforms have been initiated, their full impact is yet to be realized. He also highlighted the difficulties startups face in accessing private capital, a challenge compounded by an underdeveloped venture capital ecosystem specific to the space industry.
Looking forward, the report suggests that the space sector needs to focus on completing its transition, enhancing growth and competitiveness, and embracing global opportunities. Strengthening collaboration and dialogue across the sector is also emphasized as crucial for maximizing the benefits of space for the nation.
“It is very important to strengthen collaboration and dialogue, not just within the space sector, but also with end-users,” Bochinger said, stressing the importance of a fully inclusive space program to support broader national development.
