Key takeaways
- India aims to expand its global space market share to 10% by 2040, reflecting a strong future growth trajectory in the space economy.
- India is enhancing its space capabilities and economic growth by encouraging 100% foreign direct investment to drive its market share.
- Viasat is making significant investments in India’s space sector, including establishing engineering centers and fostering partnerships with both local and international companies to advance satellite technology and infrastructure development in the country.
- Satellite connectivity in India is crucial for improving services in sectors such as banking, aviation, and maritime, facilitating economic growth and operational efficiency.
Humble begginings
In 1963, under an otherworldly orange glow, residents of a small fishing village on the outskirts of Thumba, India, witnessed a defining moment in the history of India’s emerging space program – a rocket launch.
With oxen-pulled bullock carts and bicycles, a Nike-Apache rocket was assembled at a church and launched from a small launch pad in a nearby coconut grove.
From its humble beginnings working from an old cattle shed, the Indian Space Research Organization (ISRO) now operates from over 20 high-tech facilities across the country and has conducted almost 124 space missions since that first historic rocket launch.
Today, India is expanding opportunities for commercial partners to spur economic growth and its space capabilities, including creating new satellite connectivity solutions for its defense, maritime and aviation industries.
Supercharging the economy through space
The Indian space industry represents only 2% of the global market. With a vision to increase its market share to 10%, India’s global space economy is projected to reach $1 trillion by 2040.
To propel its space capabilities, India has agreed to allow 100% foreign direct investment in the manufacture of satellite systems. By waiving official approvals and easing the rules for launch vehicles, the Indian governments believe this strategy will support job growth and boost the economy.
“This will give India access to the latest tech advances and much-needed funds, not only from the country but from international investors too.”
India’s space program is creating synergies across industries. The emergence of private players and startups in the space sector has added a new dimension, fostering innovation, competition, and collaboration.
Banking, financial services and insurance (BFSI)
Seventy percent of new ATMs in India are in rural areas, reflecting a growing demand for financial services. Rural India presents an opportunity to expand BFSI penetration through satellite communication and internet services by providing connectivity not only for ATMs, but for bank branches and other digital banking services too.
Aviation
It was only in 2020 that India agreed to allow in-flight Wi-Fi to be used over Indian airspace. Knowing that in-flight connectivity is a strong differentiator in the highly competitive commercial airline industry, the market for satellite connectivity is only expected to grow.
Plus, air operations, including rescue and emergency services and air traffic management all benefit from access to satellite connectivity.
Maritime
Thanks to its strategic location and efficiency, India’s shipping industry is a critical piece of its economy – and it’s booming. It’s expected that satellite connectivity needs will continue to grow with the industry, unlocking significant value.
Commercial broadband and broadcasting
Using satellite internet for rural connectivity reduces the digital divide and can propel a world of new economic opportunities across India.
Human development: Health, education, and governance
The Ayushman Bharat Digital Mission under the National Health Authority already has the mandate of equipping health providers with a host of digital systems. Satellite connectivity holds immense potential to drive economic value by providing the critical lifeline to remote health centres, ambulances, education, e-governance, and skill building in remote areas.
Tourism and retail
Many other sectors across India can benefit from satellite connectivity, including everything from tourism to retail. Tour operators, hotels, and other service providers in remote tourist destinations can leverage satellite-enabled connectivity to improve reservation systems, enhance guest services, and offer real-time updates, making travel experiences smoother and more enjoyable for visitors. For retailers, digital commerce solutions can enable them to accept digital payments.
Tapping economic opportunity with Viasat
Viasat is investing in India’s space economy through strategic partnerships and innovative technology, including:
Viasat India Engineering Centers
Our centers in Chennai and Hyderabad employ over 300 personnel and support the development of global connectivity solutions, which are expected to have a positive impact on India’s space economy in the coming years.
Inmarsat-6 F1 satellite
Our I-6 F1 satellite provides coverage over the Indian Ocean and enables GPS services to the Indian government.
With recent authorization from the Indian National Space Promotion and Authorization Centre (IN-SPACe), I-6 F1 will now be able to provide C-band and L-band capacity in the country. This is the first time a geostationary Earth orbit (GEO) satellite has been approved by IN-SPACe under the new 2023 Indian Space Policy. This new capacity can be leveraged to meet the increasing needs of the aviation industry.
“The I-6 F1 authorization will enable the continuity of important communication services in the country”
Global Xpress
In partnership with BSNL, we invested over $250 million to provide in-flight connectivity over India with our GX4 satellite. This access to our high-speed broadband connectivity services enables Indian airlines and commercial maritime companies to leverage newfound levels of digitalization.
“Global Xpress is recognized as the world’s best high-speed satellite communications service for government and mobility business customers, and we are very pleased to make these capabilities available to users in India.”
Ground infrastructure
The ground infrastructure we built in Ghaziabad enables L-band (ELERA) and Ka-band (Global Xpress) connectivity. This investment prioritized the enhancement of satellite broadband connectivity across vital aviation, maritime, enterprises, and defense sectors.
By working closely with the Telecom Regulatory Authority of India (TRAI), the Department of Telecommunications ( DOT ), and other government bodies, we are enhancing satellite broadband, including direct-to-device (D2D) services in India.
Satellite gateway antennas
In partnership with Larsen & Toubro (L&T), India’s leading engineering and construction company, we built satellite gateway antennas that are being used by the ISRO for GSAT 20 and other satellites.
Satellite phones
Working with Sasken Technologies Bangalor, a pioneer in product engineering and digital transformation, we designed our handheld satellite phone, then known as IsatPhone 2. This was a truly global project with companies across Finland, Indonesia, Europe and North America all working together with Saksken in India to advance satellite phone capabilities.
Local partnerships
Viasat continues to build a dynamic ecosystem of partners across India which is poised to play a pivotal role in shaping the future of space exploration and commercial activities. Our growing list of partners include BSNL, Nelco, and 12 local companies specializing in maritime, aviation, and government services.
The next space age for India
From its modest beginnings to its current expansive network, India’s space program has made significant strides in shaping the country’s economic and technological landscape. Now, through the introduction of policies that encourage foreign direct investment by companies like Viasat, India is poised to increase its share in the global space market significantly by its 2040 projection.
“We remain steadfast in our mission to empower India with world-class technology and connectivity solutions, driving progress and innovation across the nation. Additionally, we are dedicated to delivering advanced in-flight and maritime connectivity solutions to Indian airlines and maritime vessels. Our investments underscore Viasat’s long-term vision to support India’s digital transformation, enhance operational efficiencies, and ensure robust, reliable connectivity for essential services.”