International space commercialisation is expected to expand dramatically, with the global space economy projected to touch nearly $1 trillion by 2040, according to estimates.
ISRO’s commercial launch of BlueBird Block-2 marks a major shift
In a significant commercial milestone, the Indian Space Research Organisation (ISRO) recently launched a next-generation US communication satellite, BlueBird Block-2, onboard its heaviest rocket LVM3-M6, from Sriharikota in Andhra Pradesh.
The mission was undertaken under a commercial agreement signed between NewSpace India Ltd (NSIL) and the US-based satellite company AST SpaceMobile (AST and Science, LLC). NSIL functions as the commercial arm of ISRO, and the launch reflects India’s increasing push towards using its space capabilities for international commercial services.
The BlueBird Block-2 satellite is reported to be the heaviest satellite ever lifted from Indian soil using an Indian launcher, underlining the growing reliability and scale of Indian launch vehicles.
A satellite network built for direct-to-mobile connectivity
The BlueBird Block-2 mission is part of a global Low Earth Orbit (LEO) constellation aimed at providing direct-to-mobile connectivity through satellite. The constellation is designed to enable 4G and 5G voice and video calls, messaging, streaming and data access across the world, ensuring connectivity “everywhere and at all times.”
The launch took place from the Satish Dhawan Space Station at 8:55 AM IST. After around 15 minutes of flight, the satellite separated successfully and was placed into its intended orbit, marking another clean execution for India’s heavy-lift LVM3 platform.
Private space companies are redrawing the global space map
The launch comes at a time when major private companies such as SpaceX, Blue Origin, and Virgin have reshaped the global space industry. These private players are no longer limited to supplying parts or services — they are now at the forefront of rocket launches, satellite deployments, and even future goals like space tourism.
With more governments opening up space to public-private collaboration, the private sector is rapidly positioning itself to offer services to both government agencies and commercial customers. This shift has created a lucrative market for communication satellites, Earth observation satellites, meteorological satellites, in-orbit servicing and launch services. In the coming years, new frontiers such as space tourism and even asteroid mining may also become commercially viable.
Global space economy set for massive expansion
The global space economy has already shown strong growth, reaching $447 billion by 2020. With increasing commercial activity, it is expected to exceed $1 trillion by 2040.
However, the expansion raises serious governance questions. One of the most difficult challenges will be to build a strong and workable international framework to regulate the growing number of private entities operating in space. Existing treaties and agreements — including those under the UN’s Committee on the Peaceful Uses of Outer Space (COPUOS) — are not designed to manage large-scale privatisation.
Once private actors begin playing a greater role, new issues become unavoidable: questions of resource ownership, space debris mitigation, space traffic management, accident compensation, profit sharing, environmental degradation and safety standards.
India still has a small share — but is scaling up quickly
Despite its global reputation as a cost-effective and reliable space power, India currently accounts for only around 2% of the global space economy, which is valued at approximately USD 360 billion.
For a long time, India’s private space sector played a limited role, mainly as a supplier to ISRO. That structure is now changing. Non-Governmental Entities (NGEs) are being encouraged to participate as independent actors, helping India grow its space economy beyond state-led missions.
To support this transformation, India created IN-SPACe, a single-window mechanism that allows private players to access ISRO’s infrastructure and facilities. The government has stated that there has been nearly a 200-fold increase in space startups over just two years following the opening up of the space sector.
In 2023 alone, ₹1,000 crore was invested in India’s space sector, and the ecosystem now supports around 450 small and medium enterprises. According to government projections, India’s share in the global space economy is expected to rise sharply — from 2% in 2021 to 8% by 2030, and potentially to 15% by 2047.
A major catalyst for this growth has been India’s decision to permit 100% foreign direct investment (FDI) in the space sector, which has encouraged rapid development in emerging areas such as advanced small satellites, geospatial technologies and orbital transfer vehicles.
NSIL: The commercial bridge between ISRO and industry
Privatisation received a major boost in 2019 with the incorporation of New Space India Limited (NSIL), a wholly-owned Government of India undertaking under the Department of Space. NSIL was created to commercially exploit ISRO’s research and development achievements and transfer those capabilities to industry.
NSIL’s work includes enabling technology transfer for small satellites, supporting manufacturing partnerships for the Small Satellite Launch Vehicle (SSLV), productionising the Polar Satellite Launch Vehicle (PSLV) through Indian industry, marketing launch services, and promoting spin-off technologies both in India and abroad.
In effect, NSIL is the commercial engine of ISRO, with the responsibility of helping Indian industries enter high-technology space activities while ensuring commercial exploitation of products and services generated through India’s space programme.
Major missions and milestones
NSIL has already undertaken demand-driven communication satellite missions. GSAT-N1 (GSAT-24), aimed at meeting DTH requirements, was successfully launched on 23 June 2022 and has begun operations. NSIL’s second demand-driven mission, GSAT-N2 (GSAT-20), was launched on 19 November 2024 to support broadband requirements.
It has also successfully launched 124 international and 3 Indian customer satellites onboard ISRO platforms including PSLV, LVM3 and SSLV. NSIL currently owns and operates 15 in-orbit communication satellites, providing services for DTH, VSAT, TV, DSNG, IFMC, broadband and other applications. The company has also been disseminating Earth observation satellite data to global customers since May 2023 and has provided multiple tracking and early orbit phase supports, including deep space mission support.
Looking ahead, GSAT-N3 is proposed for launch in Q1 of 2026, while the first fully Indian industry-manufactured PSLV is envisaged to launch in Q2 of 2025. NSIL also plans to expand PPP models for LVM3 manufacturing and promote private industry participation in building Earth observation satellites, positioning India to tap the fast-growing global launch services market.
India’s growing presence in global space activity
India’s increased private participation is unfolding alongside a sharp rise in launch activity. Since the NDA rule, India has launched 398 foreign satellites and 56 domestic satellites, reflecting both domestic capacity growth and increasing trust from international customers.
As space commercialisation accelerates worldwide, India appears positioned to play a much larger role — provided it successfully manages regulatory clarity, global partnerships, and the growing demands of a commercial-first space economy.