RIYADH: India has become the fourth nation to land on the moon and has set an ambitious lunar roadmap for the next 15 years, aiming to land an Indian astronaut on the moon by 2040, ǰٱ.
This comes as part of New Delhi’s efforts to solidify its position as a space power. While the endeavor carries symbolic weight and bolsters national pride, the economic dimension of the space program remains a key driver of India’s ambitions.
Official estimates indicate that India’s space economy is projected to grow fivefold by 2047, making it a crucial pillar in achieving the country’s long-term vision. The sector is currently valued at approximately $8.4 billion, representing 2 percent of the global space market, while its contribution to gross domestic product is around $2.5 billion, supporting up to 100,000 jobs.
India achieves an estimated economic return of $2.54 for every dollar spent in the space sector, making its productivity about two and a half times higher than the average productivity of Indian industry. With these ambitions, New Delhi aims to increase its share of the global space market to 8 percent by 2033, boosting the value of the space industry to $44 billion.
Despite these promising figures, many experts warn that India’s ambitions could clash with a reality fraught with challenges, particularly bureaucratic inertia within the government sector.
New Delhi still lacks many of the industrial components necessary to achieve its plans. Wester Atkins, professor of Aerospace Systems, told Al-Eqtisadiah that the space industry is inherently complex and requires not only specialized human capital but also a fully integrated industrial base capable of producing the necessary components.
Atkins believes that “government dominance over the industry prevents the realization of the potential strengths of the Indian space program.”
Paloma O’Brien, professor of Space Thermodynamics, told Al-Eqtisadiah: “The most significant shortcomings of the Indian space program lie in its heavy reliance on imports of essential components needed for a comprehensive space program. Indian industrial capabilities in related fields still lag behind its ambitions.”
She added: “India has made considerable progress in the space industry, but it still lacks many of the industrial components necessary to achieve its ambitious plans.”
This challenge, in particular, has prompted the government to open the sector to private companies in space technologies and services. The market now includes more than 200 startups operating in this field, some of which have gained international recognition, enabling them to sign contracts with the US to provide advanced satellite services. However, experts believe that the sector has not yet reached the required level of maturity.
O’Brien also told The Economic Times: “The most significant shortcoming of the Indian space program lies in its heavy reliance on importing the essential components needed for a complete space program. India’s industrial capabilities in related fields still lag behind its ambitions.”
She added that “high tariffs on imported components make Indian space products less competitive compared to countries with well-established space industries.”
Startups struggle amid regulatory constraints
To establish itself as a significant player in the global space race, India urgently needs to strengthen its domestic industrial base. Despite ambitious goals, bureaucracy — particularly licensing hurdles — continues to slow the growth of startups due to the lack of a flexible regulatory framework that encourages innovation and facilitates rapid decision-making.
To date, the private sector remains heavily reliant on foreign technology, which limits its ability to compete as an independent force in the international market.
Industry experts believe that building a comprehensive space sector requires a long-term vision and sustained investment in technology and industrial infrastructure — requirements that often exceed India’s available financial resources. This necessitates greater efforts to attract foreign capital so that the country can achieve self-sufficiency and solidify its position among the world’s leading spacefaring nations.
