India’s space sector is changing fast, moving from a government-led field to a vibrant, innovation-driven industry. It is also becoming an important part of national development and smart governance.

At the CII International Conference on Space 2025 in Bengaluru, KPMG in India and the Confederation of Indian Industry (CII) released a report titled “Propelling India into a New Era of Space and Innovation.” The report highlights India’s goal to capture 8% of the global space economy by 2035, which could make it a $44 billion industry by 2033.

Nipun Agarwal, Head of Defence and Aerospace at KPMG, told NDTV that the global space economy is expected to reach $1.8 trillion (around ₹155 lakh crore) in the next 10 years. India currently has about 2% of the global market and aims to grow this to 8% through technology, new markets, and supportive policies.

The report identifies three main drivers for this growth: technological innovation, market creation, and a favourable policy environment. Agarwal explained that startups are innovating rapidly, and government initiatives like IN-SPACe are making it easier for companies to operate.

Space-based services such asEarth Observation (EO), Satellite Communication (SatCom), and Navigation (PNT) are becoming essential for governance, economic growth, and national security.These services are already part of major initiatives like PM Gati Shakti and Ayushman Bharat.Digital platforms such as Bhuvan NextGen, BharatNet, and the National Geospatial Data Registry are helping connect space data with government services.

While India does not yet have a formal space law, Agarwal said this is not stopping companies. They are eager to innovate and contribute to the economy.

Today, the space sector includes not justISRO but also a growing ecosystem of startups and private companies creating technologies that benefit everyday life.Agarwal said the sector is preparing for ambitious projects like Moon landings, human space missions, and a potential Indian space station.

The report also stresses the need for better coordination across ministries, innovative financing, and dedicated Space Adoption Units. Key areas such as defence, disaster management, and governance will lead in using space technology, while international partnerships will strengthen India’s global role.

Gaurav Mehndiratta, KPMG Partner and National Head of Aerospace, Defence and Space, said India is at a pivotal point. With decades of experience, the country can now scale up, integrate its efforts, and aim for global leadership. Coordinated action by industry, government, and academia will help India harness space technology for innovation, infrastructure, and public services. Space is becoming a powerful tool for India’s development, helping the country move closer to its vision of a Viksit Bharat by 2047.