India’s digital revolution is reaching new heights. As the country accelerates towards a digitally empowered future, satellite communications (SatCom) is emerging as a critical enabler to bridge the digital divide, especially in remote and underserved regions. From powering high-speed internet to enabling smart agriculture in rural areas, SatCom is poised to complement terrestrial networks and expand the reach while contributing to India’s digital transformation. With the government’s push for inclusive connectivity, recent policy shifts, and the entry of global and domestic players into India’s satellite broadband space, the stage is set for SatCom to become the next big leap in India’s connectivity journey.
Unlocking Scale: What Will Drive India’s SatCom Surge?
What is now leading this paradigm shift from vision to execution are the many structural enablers that have come into action in the last few years. To begin with, there is an increasing willingness by the government to liberalise the space sector, allowing private players to collaborate more closely with organisations like ISRO and IN-SPACe. ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International’s 2024 TMT Outlook also revealed that India has already emerged as the 5th largest global ecosystem in terms of private space-tech investments. With over 119 homegrown startups raising approximately USD 2 billion in cumulative funding - this rapid growth is reshaping the satellite broadband narrativeâ€� and is moving the needle â€� from being perceived as a niche backhaul solution to now being seen as a mainstream digital infrastructure pillar.
The commercialisation of space is also supported by critical technological tailwinds emerging now. Small satellite constellations (LEO clusters), reusable launch vehicles, 3D-printed satellite components, and software-defined payloads are helping to reduce the costs dramatically and are accelerating go-to-market timelines. Coupled with falling per-bit data prices along with improved satellite connectivity throughput capacity, these advancements are making SatCom more accessible—not only for companies and enterprise use cases but also for individual consumption at the community level - in areas where fibre deployment remains economically unviable. However, for the individuals to use SatComs, it’s important to make hardware more accessible and available at subsidised prices and plans.
Policy formulation has also been equally powerful. Initiatives such as the National Broadband Mission and BharatNet are already creating the scaffolding & space for digital inclusion. The Draft Indian Space Policy 2023 and proposed Satellite Communication Policy further reflect the government’s intent to offer clarity on licensing, spectrum allocation, and landing rights—elements that historically lacked predictability. When seen in conjunction with the Production Linked Incentive (PLI) schemes in telecom hardware and the push for 5G connectivity across urban and rural India, a convergence is clearly underway: SatCom stands today as more than a standalone technology â€� more like an essential cog in India’s integrated digital architecture and a strong enabler to connect the unconnected India.Â
Charting the Course: Infrastructure, Policy, and the Future of SatCom
However, the path ahead is not without friction. While the regulatory environment is evolving, the absence of a unified and enforceable space communications framework continues to create grey zones for investors and operators alike. Fragmented policies, lack of clarity on auction versus administrative allocation of spectrum, and limited guidelines around orbital slot access are impeding the ability of private players to commit long-term capital at scale. The industry today needs a forward-looking, single-window regulatory approach that addresses both legacy bottlenecks and emerging realities.
India’s satellite communication market is projected to grow rapidly, driven by connectivity demands in remote areas and the evolution of space tech. However, regulatory bottlenecks—particularly uncertainty around spectrum allocation and delays in ITU coordination—continue to slow deployment. Meanwhile, infrastructure gaps remain a hurdle. Despite promising progress, India needs stronger ground station networks and deeper fiber backhaul to fully integrate satellite services with terrestrial connectivity. Unlocking the full potential of SatCom will require clear policy signals, public-private partnerships, and investment-friendly reforms to support the next phase of India’s digital inclusion push.
Another key challenge that continues to be prominent is the relevance of cost dynamics. Even though the cost of manufacturing in the satellite launch around orbits, the overall capex and opex involved in building out a viable SatCom business model—especially in low-ARPU markets—remains high. We must focus on ensuring affordability for both end-users and for device accessibility, through efforts such as financial incentives, universal service obligations, and low-cost terminal equipment and innovation. Furthermore, as SatCom traffic scales up, there will also be increasing red flags around cybersecurity, data integrity, and interoperability—which invites more attention on robust security protocols & international collaboration.
Elevating India’s Digital Ambitions � One Orbit at a Time
As India charts its course toward becoming a digitally inclusive economy, satellite communications, creates an avenue to launch the next phase for the sector. From enabling high-speed internet access in remote villages to enhancing national disaster response, SatCom can be envisioned to complement terrestrial infrastructure and empower the powerful vision of Digital India.
In the age of AI, satellite technology also holds the potential to compliment hyper-intelligent, self-optimising networks that deliver personalisation and scalability in a way that has never been done before. But to fully unlock the power of the industry, including ‘last-mile-firstâ€� connectivity in India’s digital revolution, there is an increasing dependence on creating an ecosystem that encourages responsible and scalable AI adoption. ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in India’s 2024 report Redefining TMT with AI highlights that element such as that talent readiness, infrastructure investment, and ethical frameworks are just as vital as the technology itself. With 33% of organisations projecting that up to half their workforce will be AI-ready by FY26, and over 65% of Indian CXOs endorsing generative AI as a competitive advantage, there’s clear potential of moving rapidly towards creating a future-proof foundation.
Having said all of this, it is clear that the future of SatCom in India is undeniably promising. What is required now is a deliberate and collaborative approach—which is anchored in meaningful policy, agile regulation, and collaborative efforts through industry-government-academia partnerships. The real opportunity lies not only in connecting individuals but in empowering them to participate purposefully in the digital economy—whether through telehealth consultations in the Northeast, e-learning in Ladakh, or real-time weather intelligence for farmers in drought-prone regions.
India’s space and digital narratives are no longer parallel—they are converging. With the right enablers, SatCom can be the backbone of a truly inclusive and powerful digital Bharat â€� a version of India where digital public infrastructure and private innovation work in together to ensure that no citizen is left behind. The leap from sky to screen is already underway. The actual onus now lies in sustaining this momentum with purpose, practicality and with a vision of the bigger picture.Â
A version of this article was published in Communications Today Online on May 12 2025. The same can be read
Co-Authored with Yogesh Sharma, Director, Digital Strategy and Insights, ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in India
How can ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in India help
Author
Purushothaman KG
Partner, Head Technology Transformation and Sector Head - Telecommunications
ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in India
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