India’s space economy grows to USD 9 billion, start-ups surge to 440
Cumulative investment in Indian space start-ups increased from USD 100.5 million in 2021-22 to USD 618.5 million by March 31, 2026, while the Government received 11 foreign direct investment proposals worth Rs 1,745.40 crore for the sector by mid-2026.
India’s space-sector transformation has been driven by a series of policy and institutional reforms initiated in June 2020, which opened up the entire space value chain to non-government entities and encouraged private companies to participate in satellite manufacturing, launch vehicles and space-based services.
The reforms led to the establishment of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) as a single-window agency to promote and authorise private-sector space activities.
NewSpace India Limited (NSIL), established in 2019 as the commercial arm of the Department of Space, was also entrusted with an expanded role in commercialising technologies developed using public funds.
The Indian Space Association, launched in October 2021, provides an industry platform for engagement with the Government and supports the growth of the sector.
The institutional framework was further strengthened through the Indian Space Policy 2023, which defined the roles of ISRO, IN-SPACe and NSIL.
Under the policy, ISRO focuses on advanced research, emerging technologies and national missions, while mature operational systems are transferred to industry for manufacturing and commercial production.
The Government also liberalised the foreign direct investment policy in February 2024, allowing up to 74 per cent foreign investment through the automatic route in satellite manufacturing and operations, satellite data products and ground and user segments.
The limit is 49 per cent for launch vehicles and spaceports and 100 per cent for components and subsystems.
IN-SPACe introduced the Norms, Guidelines and Procedures for authorisation of space activities in May 2024, laying down the requirements and conditions for entities undertaking space activities from Indian territory or within the country’s jurisdiction.
The reforms have yielded measurable results. NSIL’s revenue rose from Rs 321.77 crore in 2021-22 to over Rs 3,000 crore in 2024-25.
It signed 118 technology transfer agreements covering 83 ISRO technologies, while IN-SPACe facilitated 71 technology transfers to industry and start-ups by January 31, 2026.
By mid-2026, IN-SPACe had granted 113 authorisations to 52 non-government entities, including 18 start-ups.
Six Indian private entities launched 18 satellites, while 25 payloads were flown or scheduled on PSLV Orbital Experimental Module platforms.
The private sector has also registered significant milestones in launch capabilities.
Hyderabad-based Skyroot Aerospace launched Vikram-S in November 2022, becoming the first Indian private company to launch a privately developed rocket with authorisation from IN-SPACe.
In May 2024, Agnikul Cosmos became the first non-government entity to launch a rocket from a private launch pad at Sriharikota. The mission also demonstrated a single-piece, 3D-printed semi-cryogenic rocket engine.
Skyroot Aerospace’s Vikram-I successfully reached orbit on its maiden flight on July 18, 2026, marking the first orbital launch of a rocket from Indian soil by an Indian private company.
The reforms have also paved the way for industry-led production of launch vehicles. NSIL signed an agreement with Hindustan Aeronautics Limited-led consortium for the production of five PSLV-XL launch vehicles in September 2022.
In September 2025, an agreement was signed to transfer Small Satellite Launch Vehicle technology to HAL for industrial production.
India’s international space cooperation has expanded to more than 300 agreements with 61 countries and five multilateral organisations as of June 2026.
ISRO also launched 399 foreign satellites between 2014 and January 2026, compared with 35 during the period from 1990 to 2014.
To support the growth of start-ups, IN-SPACe introduced several funding initiatives, including the Pre-incubation Entrepreneurship programme, seed funding scheme and Technology Adoption Fund.
The latter, established in February 2025 with an outlay of Rs 500 crore, provides partial financial assistance to companies developing and commercialising advanced space technologies.
The Union Cabinet also approved a Rs 1,000-crore venture capital fund under IN-SPACe in 2024 to support space start-ups at different stages of growth.
The Government projects India’s space economy to reach around USD 44 billion by 2033, accounting for about eight per cent of the global space economy, and USD 100 billion by 2040.
The sector is expected to play a significant role in strengthening domestic capabilities, creating skilled employment and contributing to the Viksit Bharat 2047 vision.
