The chairman of the Indian Space Research Organisation (ISRO), S. Somanath, emphasized the necessity for India to cultivate leading space companies rather than merely service-oriented firms. Speaking at the Indian Space Conclave on November 5, 2024, he highlighted that while India has made significant strides in the downstream sector—focused on space applications—there remains a critical gap in the upstream sector, which involves the manufacturing of space hardware and propulsion systems.

S Somanath called upon major industries to invest in the upstream space infrastructure, noting that building large platforms and rockets poses challenges due to high investment requirements and technological risks. He stated, "We need to create leading space companies in India, not just service providing companies," advocating for firms that can design, manufacture, and offer competitive products globally.

India currently possesses approximately 90% of the know-how required to build rockets and 60% for space components. However, achieving ISRO's vision necessitates new players and a thriving start-up ecosystem. There are around 450 companies involved in parts manufacturing for satellites, but scaling up remains a challenge.

Somanath outlined India's ambition to increase its share of the global space economy from 2% to 10% within the next decade. This goal will require substantial government support and collaboration with private sectors. He noted that every rupee invested in the space sector yields over 2.5 times its value back to the economy, underscoring the economic impact of space initiatives.

The ISRO chief reiterated India's commitment to ambitious projects such as establishing a human space station and sending an Indian astronaut to the Moon by 2040. He emphasized that these initiatives are not only about technical prowess but also about inspiring future generations and fostering growth across high-tech industries.

Somanath's remarks reflect a broader strategy aimed at transforming India's space capabilities into a robust ecosystem that supports innovation and competitiveness on a global scale.