Spacetech’s industrial multiplier creates a new talent challenge

advanced manufacturing.

As of August 2026, around 440 space-technology startups were registered in India; while NewSpace India Limited (NSIL), in coordination with Indian National Space Promotion and Authorisation Centre (IN-SPACe), had signed 118 technology-transfer agreements covering 83 technologies developed by Indian Space Research Organisation (ISRO) and the Department of Space, according to a govt source. These developments point to an ecosystem that is creating new capabilities and industrial capacity simultaneously.

India’s space economy ambition from about USD 8.4 billion in 2023 to approximately USD 44 billion by 2033 will require deeper domestic capability across manufacturing, electronics, materials, propulsion, testing and the wider supply chain.

The result is a growing industrial multiplier effect and a talent challenge that cannot be solved through conventional aerospace hiring alone.

From space-grade engineering to cross-industry capability

Amit Mahajan, Director, Paras Defence and Space Technologies, said the sector requires capabilities spanning precision manufacturing, metallurgy, electronics, sensors, Radio Frequency ( RF) and communications, propulsion, power electronics, batteries, robotics, AI, embedded systems, controls, simulation, testing and reliability engineering.

The opportunity also extends deeper into the supply chain, including specialised chemicals, alloys, coatings, adhesives, seals, connectors and semiconductor components.

These capabilities are valuable because space-grade engineering requires products to perform reliably under extreme conditions of temperature, vibration, radiation and long-term use.

This convergence is already visible in areas such as electro-optics and precision electronics, where space and defence requirements increasingly overlap.

Mahajan pointed to the potential for indigenous capabilities in optics, optoelectronics and precision-engineered systems to serve both sectors.

The wider industrial impact is not limited to defence. ISRO and IN-SPACe have showcased 43 space technologies for potential automotive applications, including sensors, inertial systems, vibration technologies, coatings and adhesives.

For companies, the challenge is therefore to develop engineers who understand not only design, but also manufacturing, testing, qualification, integration and cost-effective delivery.

The talent pool will have to be built, not just hired

The emerging demand is exposing a limitation in the traditional approach to recruitment. There are not enough ready-made specialists to meet the requirements of a rapidly expanding ecosystem.

Sudhir Sethi, Chief People Officer & Head- Legal, INOX India, said the company’s experience in cryogenic engineering illustrates how specialised capabilities can translate across industries.

Its work with ISRO on cryogenic equipment, thermal vacuum systems and launch and testing facilities has created expertise relevant to aviation, space and defence.

Sethi said the future talent pool will require a combination of specialised hiring, reskilling and cross-industry mobility, with skills in precision and cryogenic engineering, advanced manufacturing, specialised welding, instrumentation, controls and quality systems becoming increasingly important.

At BonV Aero, Co-founder & Director, Rahul Kumar observed a similar pattern. The company is hiring engineers from telecom, automotive electronics and industrial automation, then giving them hands-on exposure to aerospace-grade standards and mission environments.

The emphasis is on building flight-critical software, robust onboard electronics, secure communication links and full-system reliability.

“Space pulling in adjacent industries and upskilling them fast” is how Kumar described the shift.

The challenge is not simply finding people who have worked in space, but identifying transferable technical instincts and developing them into mission-ready expertise.

Why capability-building must become a business priority

As competition for specialised engineers intensifies, organisations will need to look beyond industry-specific talent pools.

Mahajan argued that companies should identify scarce capabilities such as embedded systems, Radio Frequency (RF) electronics, precision manufacturing, advanced materials, controls, robotics and reliability engineering rather than simply count the number of aerospace engineers they need.

That means building structured reskilling programmes, stronger relationships with engineering institutions, apprenticeships and opportunities to work on complex real-world systems.

It also means retaining technical talent, since losing an experienced specialist can mean losing years of accumulated organisational knowledge.

Kumar added that companies should widen their search for talent, create internal learning pathways and give engineers a sense of mission and ownership.

For specialists choosing between conventional roles and high-stakes aerospace work, the opportunity to contribute to meaningful outcomes can be as important as compensation.

For organisations, the central question is no longer how to recruit enough space engineers. It is how to build the multidisciplinary talent that can make space technologies reliable, scalable and commercially viable across industries.