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Indian space economy: strategic and geopolitical dimensions: an overview

India has a long tradition of knowledge in astronomy and metaphysics, reflecting a deep understanding of the cosmos. Modern satellites and remote sensing now provide critical data for agriculture, disaster response, climate monitoring, and defence. Artificial intelligence and machine learning enhance precision and actionable insights across these sectors. Space based technologies drive economic growth and create high skill analytics and engineering jobs. Together, these capabilities strengthen innovation, resilience, sustainable development, national security and informed geopolitical decision making.

The story of India and space is far from new. Ancient India already possessed knowledge of the observable universe, distant star systems, and had mapped beyond what Copernicus would only discover in the 15th century. The understanding of space existed long before 5114 BCE, the epoch of the Ramayan. Remarkably, ancient texts even note events such as Lord Hanuman’s birth coinciding with the Moon crossing the Spica star system (Chitra Nakshatra). This is just one example among countless enigmatic tales preserved in India’s literary heritage. Ancient Indians combined a deep understanding of physics with a highly developed metaphysics, each complementing the other, forming a way of life far ahead of its time long before the dark ages swept across the sub-continent.


In the technological age, India continues this legacy and is very much part of the modern scientific and technological world. India’s space journey began in the mid-20th century with the vision of pioneers like Dr. Vikram Sarabhai, who laid the foundation for space research in independent India. In 1945, the Tata Institute of Fundamental Research (TIFR) was established, marking the early phase of scientific development that later supported space research. The Indian National Committee for Space Research (INCOSPAR) was formed in 1962, leading to the establishment of the Indian Space Research Organisation (ISRO) in 1969. India launched its first satellite, Aryabhata, in 1975 with Soviet assistance, followed by the successful Satellite Launch Vehicle-3 (SLV-3) in 1980, which placed Rohini into orbit, making India a spacefaring nation.
Over the decades, India developed indigenous launch vehicles such as PSLV and GSLV and expanded applications in communication, remote sensing, weather forecasting, and navigation. Major milestones included the launch of INSAT and IRS satellite series, Chandrayaan-1 in 2008 which confirmed the presence of water on the Moon, and the Mars Orbiter Mission (Mangalyaan) in 2013, which entered Mars orbit in 2014, showcasing India’s cost-effective and technologically advanced space capabilities on the global stage. After 2014, India introduced major policy reforms to modernize its space sector and promote private participation, transforming it from a state-dominated program into a competitive space economy. The most significant change was the liberalization of space activities through the creation of IN-SPACe, which acts as a single-window regulator and facilitator for private companies, while ISRO increasingly focuses on research and advanced missions. This reform process culminated in the Indian Space Policy 2023, which clearly defined institutional roles, enabled private players to build and operate satellites, launch vehicles, and space services, and encouraged commercialization through New Space India Limited (NSIL). Alongside this, the government liberalized FDI norms, allowing up to 100% foreign investment in several space-related activities, and announced financial incentives such as a dedicated space startup fund.


India’s space sector reforms introduced a shift from a purely state-led model to a hybrid ecosystem combining public capability with private innovation. The creation of IN-SPACe and the Indian Space Policy 2023 enabled private firms and startups to operate alongside ISRO, while ISRO itself moved toward high-risk research, deep-space missions, and strategic technologies. This ecosystem draws heavily on India’s talent in computer engineering, AI and machine learning, remote sensing, aerospace, electronics, and systems engineering, where strengths lie not only in cost efficiency but also in large-scale data handling, algorithm development, and mission reliability. AI and ML are increasingly used for satellite image processing, climate modelling, disaster management, and surveillance, while aerospace and allied engineers support launch systems and satellite platforms. However, the private market is still maturing funding depth, regulatory learning curves, and global competition remain challenges. Although brain drain persists due to higher salaries and advanced research infrastructure abroad, the expanding private space sector, start p funding, and international collaborations are gradually improving talent retention and creating pathways for skilled professionals to remain in, or return to, India.

Today, IN-SPACe has signed a Memorandum of Understanding (MoU) with an India-led consortium to take forward the Earth Observation Public-Private Partnership (EO-PPP) programme for establishing India’s first indigenous commercial Earth Observation satellite constellation. The consortium will design, build, and operate a constellation of 12 Earth Observation satellites, delivering Analysis Ready Data and value-added services for applications ranging from agriculture and disaster management to climate monitoring, infrastructure planning, and national security. This initiative reflects IN-SPACe’s commitment to enabling mission-scale private sector participation and strengthening India’s indigenous Earth Observation capabilities through structured public-private collaboration. The EO-PPP programme is a significant step towards building a reliable national EO data backbone, reducing dependence on foreign sources, and supporting India’s growing geospatial and space-based services ecosystem.


In the Indian subcontinent, being a strong space technology power is critically important because of the region’s vulnerability to climate variability, natural disasters, security challenges, and agricultural dependence. Space-based satellites enable accurate weather forecasting, climate monitoring, and early warning systems for cyclones, floods, droughts, and heatwaves, which helps save lives and reduce economic losses in a densely populated region. In disaster management, satellite imagery supports rapid assessment, relief coordination, and infrastructure recovery. From a defence perspective, space capabilities enhance border surveillance, secure communication, navigation, and strategic deterrence in a geopolitically sensitive neighbourhood. For agriculture, satellite data assists in crop monitoring, soil moisture assessment, irrigation planning, and yield prediction, directly supporting food security and farmers’ livelihoods. Together, space technology strengthens resilience, sovereignty, national security and sustainable development across the Indian subcontinent.