Indian aerospace industry contributes $60 billion to GDP, creates 4.7 million jobs: report

A report shows that the Indian aerospace industry contributed $60 billion to gross domestic product and created 4.7 million jobs in the past 10 years.

Reports show that the country has invested nearly $13 billion in the aerospace sector in the past few years. Through direct, indirect and induced benefits, the industry contributes US$60 billion to the country's GDP.

The report, commissioned by the Indian Space Research Organization (ISRO) and written by global consultancy firm Novaspace, was released by Union Minister of State for Space Jitendra Singh on the occasion of National Space Day.

Novaspace affiliated executive advisor Steve Bochinger said the industry's projected revenue will increase from $3.8 billion in 2014 to $6.3 billion in 2023

He said every dollar generated through investment or revenue in aerospace brings an additional “$2.54 in indirect and induced benefits” to the national economy.

Bochinger also pointed out that India's aerospace sector has created 4.7 million jobs, “employing 96,000 people directly through the public and private sectors.”

The report further shows that India is the eighth-largest aerospace country in the world in terms of funding, and new startups in the industry are growing rapidly.

ISRO benefits around 8 lakh fishermen every day, it added. About 1.4 billion Indians also benefit from satellite weather forecasts.

At the same time, the report also highlights the regulatory, financing, infrastructure, market environment and labor challenges currently affecting the Indian aerospace industry.

Bolsinger noted that major regulatory reforms in the aerospace sector “have not yet taken full effect.”

Additionally, access to private capital is a major concern for new startups in the country, “especially since the venture capital ecosystem is underdeveloped,” he said.

(This article has not been edited by News18 staff and is published by IANS, the associated news agency)