A senior Department of Telecommunications (DoT) official stated on Wednesday that if India is to become the world's third-largest space economy, lower launch costs, domestic production of vital space-grade materials, and a greater emphasis on satellite-based applications will be crucial.
Deb Kumar Chakrabarti, Member (Services), DoT, stated at the IAFI Space Policy Conference 2026 that India would require substantial structural, legal, and policy changes in order to increase its influence in the international space industry.
India's space industry is currently worth $8.4 billion, but the government wants it to grow to $44 billion by 2033, making it the third-largest space economy in the world.

According to Chakrabarti, "becoming the number three country in the space economy in the world... requires many structural changes and adjustments in different policies and regulations... and the rank of the country will rise from number six to number three." We have a big jump planned for the future, in my opinion," he continued.
According to the source, India has already established a reputation for dependable and affordable space technology, with private firms like Agnikul and Skyroot Aerospace contributing to cut launch costs. But he emphasized that the nation must now go beyond small-payload launches.
Higher payload capabilities dramatically lower launch costs per kilogram, according to Chakrabarti, who used SpaceX's Falcon rockets as an example.

"The high payload sector and lowering the launch cost per kilogram are two areas that India has to focus on and investigate. The material dependencies are the second point, he stated.
"For example, the space-grade carbon fibre...We do not make the semiconductors and the cosmic radiation-proof semiconductors," he said, highlighting India's ongoing reliance on imports for essential space-grade materials and components and cautioning that doing so exposes the industry to supply-chain risks. We largely rely on China to produce the essential minerals that depend on titanium, cobalt, and lithium. There is a risk in the supply chain since you rely on another nation," he stated.

Building a robust domestic space ecosystem will require less reliance on imported carbon fiber, radiation-hardened semiconductors, and vital minerals like lithium, cobalt, and titanium, according to Chakrabarti.
Pay attention to the downstream economy
Noting that satellite applications account for the majority of global space revenue, the DoT official also urged more focus on the downstream space economy.
According to him, just approximately 30% of worldwide space revenue comes from upstream activities like launch vehicles and satellite manufacture, but roughly 70% comes from downstream services like satellite data, geospatial analytics, and Earth observation."Upstream is crucial, but India's share, or what we produce, is far less than the 70% segment's revenue. Therefore, it is crucial that we now focus on the 70% portion as well," he stated.
Innovation will be crucial in opening doors, especially in satellite communications, he continued.I don't think you will get the most out of the satellite broadband service unless you truly enter the D2D mode. Additionally, it will take some time to get into the device-to-device space, where a mobile phone can get a direct satellite signal, talk, and use it," he stated.

Reforms to regulations are required
Additionally, Chakrabarti demanded extensive changes to bolster India's space industry regulations.
According to him, the Indian National Space Promotion and Authorization Centre (IN-SPACe) ought to be given complete regulatory authority, including the ability to punish unapproved satellite operations.As of right now, there is no punishment for using satellite services without a license. It's time, in my opinion, to give that regulator complete regulatory authority. Give them all the authority to impose penalties for unlicensed operations, let them choose the IPR, and make the industry far more user-friendly," he stated.

To make India's space environment more investment-friendly, he also pushed for changes to intellectual property rights, third-party responsibility clauses, quicker multi-ministry clearances, better orbital resource coordination, and more robust space debris management.
The comments were made a few weeks after Skyroot Aerospace's Vikram-1 became the first privately built Indian rocket to successfully enter orbit, a significant milestone for the nation's commercial space sector.