Four stocks to watch as India’s space economy eyes $44 billion by 2033

On 17 April, Gujarat rolled out a space sector growth plan for 2025–2030. Within hours, Tamil Nadu responded with its own Tamil Nadu Space Industrial Policy.

Why the rush? India’s space economy is projected to skyrocket from $8.4 billion (bn) in 2024 to $44 bn by 2033, aiming for 8% of the global market, according to FICCI.

As states compete to attract space-tech investments, some listed companies are already positioned to ride this wave.

Also Read: Four fast-growing space stocks to add to your watchlist 

Here are a few stocks that could benefit from India’s space boom.

L&T

Larsen & Toubro (L&T) is an Indian multinational company that has been involved in India's space programme for over 50 years.

For the Chandrayaan-3 mission, L&T played a vital role by manufacturing essential equipment, including the Precision Monopulse Tracking Radar (PMTR), which is crucial for accurate tracking and communication with the spacecraft.

According to a media report, L&T is scaling up launch vehicle and satellite manufacturing at its Coimbatore factory.

This comes just weeks after India’s space regulator launched a $58 million (mn) fund to allow the country's early-age space tech to go commercial and cut reliance on imports.

Through these efforts, India wants to grab a piece of the global space market. Currently, L&T is assembling India’s first privately made polar satellite launch vehicle (PSLV), in partnership with Hindustan Aeronautics. This rocket is a key part of the Indian Space Research Organisation's (ISRO) space missions. 

Additionally, L&T is producing equipment for deep-space exploration programmes.

Going forward, the company hopes to scale up its space business amid India's privatisation push, which has eased foreign investment limits and allocated a larger share of procurement budgets away from state-run enterprises.

Hindustan Aeronautics

HAL is an Indian public-sector aerospace and defence company. It plays a pivotal role in the Indian space sector, collaborating closely with Isro to advance space exploration efforts.

HAL’s Aerospace Division manufactures satellite and rocket components using aluminium alloy structures. These include conical and cylindrical tankages, as well as detailed parts like sheets, rings, brackets, and bolts.

Also Read: This luggage leader is staging a turnaround. But can it overcome its baggage?

Among the critical assemblies it produces are heat shields, nose cones, and fuel tanks used in satellites and launch vehicles.

In partnership with L&T, it’s assembling India’s first privately made polar satellite launch vehicle (PSLV). This rocket plays a crucial role in Isro’s space missions and marks a significant step toward privatising India’s space launch capabilities.

Given its expertise in manufacturing critical satellite and launch vehicle components, HAL is well-positioned to benefit from India's growing space sector. Its role in assembling the country’s first private PSLV further strengthens its foothold. 

Going forward, the company plans to expand its reach in aerospace.

Walchandnagar Industries

It has been a key player in India’s space journey for over five decades. Its partnership with Isro began back in 1973 with the manufacturing of motor cases for the SLV-3 programme.

The company has built components like booster motor casings and nozzles for space missions—from SLV-3 and ASLV to PSLV and GSLV Mk II and Mk III.

WIL’s engineering excellence has supported the successful launch of satellites like ROHINI, SROSS, IRS, and GSAT. The company also played a role in India’s landmark space missions—Chandrayaan I and Mangalyaan—by supplying critical equipment.

WIL also contributed vital components to the Chandrayaan-3 mission, including the S200 booster segments used in the LVM3 launch vehicle and subsystems like the flex nozzle control tankages. These were built and tested in-house at WIL’s facilities, built to meet Isro’s exacting standards.

As India's spacetech ambitions grow, WIL stands to benefit from increased demand for high-precision aerospace components.

Going forward, WIL plans to continue its involvement in future Isro missions.

Data Patterns

Data Patterns has quietly become one of the key behind-the-scenes players in India’s space journey.

From building parts to exact Isro standards at its approved facility, to designing specialised nano satellite buses for low-cost, quick-turnaround missions, the company is deeply embedded in the space tech ecosystem.

Also Read: Metro Brands’ FY25 is a tale of two halves. Can the recovery be sustained?

It also develops ground stations that help relay mission data and has been supporting Isro for over two decades with automated test systems for launch vehicles like PSLV and GSLV. 

Data Patterns has also contributed to automating launch pads at SDSC-SHAR, proving just how broad and critical its role is in powering India’s space ambitions.

Given its expertise in satellite systems, launch pad automation, and Isro-grade manufacturing, Data Patterns is well-positioned to benefit from the projected $44 bn Indian space economy.

As demand rises for nano-satellites, test systems, and ground support infrastructure, the company stands to see strong order inflows.

Going forward, the company plans to enhance its products.

Conclusion

The opportunities are huge, from satellite services to ambitious plans for the discovery of data beaming data worldwide to deep space. In India, the momentum is clearly building.

With supportive policy shifts, growing private sector involvement, and a push for global partnerships, under the Indian Space Policy 2023, the country is carving out its place in this high-growth industry.

The most exciting frontiers Earth Overview (EO) and remote sensing, are already making a difference on the ground. According to the FICCI-Ey report, this section can contribute $8 bn to India's space economy by 2033 alone. 

As more Indian states launch their own space strategies and interest from investors is taking up speed, it’s becoming a fertile land for companies that can tap into the influence of the real world of space-operated solutions at the forefront, which are among the largest beneficiaries.

Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com