India’s space economy has grown to an estimated $8.4 billion, with 399 start-ups now operating across segments such as launch vehicles, satellites, propulsion systems and space-grade electronics, Union Minister of State (Independent Charge) for Science and Technology and Space, Dr. Jitendra Singh, told the Rajya Sabha on Wednesday.

Replying to a starred question, the Minister said the expansion followed key policy reforms initiated after 2019, which opened the space sector to private participation. A major institutional reform, he noted, was the creation of the Indian National Space Promotion and Authorisation Centre (IN-SPACe), which acts as a single-window interface between private industry and government agencies, including the Indian Space Research Organisation (ISRO).

Dr. Jitendra Singh said that while India had long possessed strong scientific capability within ISRO, the absence of an enabling ecosystem had earlier limited broader industrial involvement. The reforms, he added, created favourable conditions for private investment and entrepreneurship in a sector that was historically government-led.

As a result, the number of space start-ups has risen sharply from single-digit levels to 399 at present. The Minister said the sector, once marginal in economic terms, is now valued at around $8.4 billion and is projected to grow four to five times over the next eight to ten years, potentially reaching $40–45 billion.

He informed the House that private entities are now active across the entire space value chain. Hindustan Aeronautics Limited has signed a technology transfer agreement with ISRO for the Small Satellite Launch Vehicle (SSLV), while several Indian companies are working on satellite platforms, launch systems, propulsion technologies and related applications.

The Minister also highlighted revenues earned from foreign satellite launches, noting that of the 434 foreign satellites launched by ISRO so far, 399 were launched after 2014. These missions have generated revenues of approximately €323 million and $233 million, reflecting India’s growing footprint in the global space launch market.

Concluding his reply, Dr. Jitendra Singh said the space sector is poised to become a significant contributor to India’s future economic growth, with private investment gaining momentum and the sector emerging as an important domain for manufacturing, innovation and entrepreneurship.