Why this PSU was highlighted in Economic Survey 2025–26

Bengaluru-based NewSpace India Limited (NSIL), was incorporated in 2020 as a commercial arm of Department of Space to tap the benefits of the research and development carried out by ISRO.  India today has a fast-expanding space economy, a role underscored by the mention of NSIL in the Economic Survey 2025–26.

NSIL was officially announced during Union Budget 2019-20 by Nirmala Sitharaman, Minister of Finance and Corporate Affairs, its mandate spans production of launch vehicles, technology transfer, satellite services, and marketing of space products. “India has emerged as a major space power with the technology and ability to launch satellites and other space products at globally low cost. Time has come to harness this ability commercially” Sitharaman had said during the budget speech.

What does the Economic Survey say?

India’s space sector has emerged as a fast-growing, technology-intensive, and increasingly commercial segment of the services economy. Valued at about $ 8.4 billion (around 2 per cent of the global space market), it is projected to expand to $ 44 billion over the next decade, driven by launch services, satellite communications, earth observation, navigation, and a rapidly growing private ecosystem, according to the Economic Survey.
 
Commercial launches have been a key export source, with India launching 393 foreign satellites for 34 countries between 2015 and 2024. This effort has earned nearly $ 143 million and €272 million, reflecting its cost-effective and reliable capabilities amid rising global demand for small satellites.
 
Commercialisation has been strengthened through NSIL, whose revenues rose from ₹321 crores in FY20 to ₹2,396.4 crores in FY24, as per data sourced from CMIE Prowess.
 
NSIL is expected to record revenues worth ₹3246.1 crores in FY25, survey said.
 
In terms of profitability, profit after tax for NSIL took almost 12 folds from ₹51 crores in FY20 to ₹599 crores in FY24.
 
What is driving NSIL’s growth?

The Survey notes that profitability of NSIL has been improving steadily, driven by demand-driven missions, satellite capacity leasing, and end-to-end commercial project execution, including dedicated launch services and the deployment of communication satellites.
 
It further added that, Satellite-enabled services are expanding rapidly, with  India’s satellite data services market valued at $ 495 million in 2024, driven by applications in defence, climate services, logistics and urban planning.
 
At the same time, India’s private NewSpace ecosystem has scaled across manufacturing, launch vehicles, data analytics, and downstream services, attracting over ₹1,000 crores in private funding in FY23.
 
What has changed on the policy front?

The foundational shift toward private sector participation is anchored in the Indian Space Policy of 2023 and the establishment of Indian National Space Promotion and Authorisation Centre (IN-SPACe), as a single-window, independent, nodal agency which functions as an autonomous agency in the Department of Space (DOS). These reforms have removed historical barriers to entry, allowing non-governmental entities to manufacture and launch vehicles, operate satellites, and provide data analytics.

The way forward
NSIL has been spearheading the space commercialisation for India has signed an $18 million worth MoU with the Australian government in June 2025. Similarly, in Sept 2025 The National Centre for Medium Range Weather Forecasting (NCMRWF), under the Ministry of Earth Sciences (MoES), had signed an MoU with NSIL to establish two Direct Broadcast Network (DBNet) stations as part of the Mission Mausam project of MoES. Previously, in 2024, French satellite launch company Arianespace had signed an MoU for a long-term partnership to support satellite launch missions.