With the rapidly growing space ecosystem, the space launch segment in India is likely to grow to $13 billion by 2025, growing at a CAGR of 6 percent, a report showed on Monday.

The space launch segment in the country is spurred by growing private participation, latest technology adoption and the low-cost of launch services, said the report by Indian Space Association (ISpA) and EY.

“I’m glad our Prime Minister Narendra Modi encouraged us to go ahead as space domain became open for the public-private participation, also preparing players and the outcome is that the sector is today attracting increasing number of startups,” Union Earth Sciences Minister, Dr Jitendra Singh, said.

“On a global level, India has also emerged as a very strong player in the geospatial technology. I’m glad to know that ISpA has lived up to their role of reform implementation while articulating the industry opinion, industry stakes and also the industry participation,” he added.

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ISRO Chairman S. Somnath said that India has reached a point where we need to take the space sector to the next level and this is where the whole idea of opening up the space where the most important part is the knowledge base.

“The space sector can solve a lot of problems and important issues of climate, mapping, internet services. These are few emerging markets which we will see growing,” he said.

ISpA is now a 50-member strong association, starting from just seven members a year back.

“We believe as India looks forward to the new Space Policy, the private industry’s role is set to create a revolution in the current value chain of the space economy,” IspA Chairman Jayant D. Patil said.

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Prashant Singhal, Emerging Markets TMT Leader, EY said that space-based communication will be one of the primary mechanisms to narrow the digital divide in the country.

“Opening up of the space economy to private participation in India heralds an era of growth and innovation,” he added.