India’s Space Sector: A Decade of Triumphs and Transformations

India’s journey into space began in 1975 with the launch of its first satellite, Aryabhata, which became a symbol of the nation’s technological progress. Over the last decade, India has firmly established itself as a major player in the global space domain, achieving remarkable milestones in both scientific research and technological innovation. A pivotal moment in this trajectory occurred in 2017 when India launched an unprecedented 104 satellites in a single mission, showcasing the remarkable efficiency and cost-effectiveness of its space programme.

India’s Expanding Space Economy

From the landmark Chandrayaan-3 mission to strategic international collaborations, India’s space journey is reshaping its scientific, economic, and diplomatic landscape. The space sector, currently valued at USD 8.4 billion, holds a modest 2-3% share of the global space economy. However, projections suggest that by 2033, India’s space industry could expand to USD 44 billion, with exports contributing USD 11 billion—further positioning India as a key player in the global arena.

The Rise of Private Sector Participation

This remarkable growth is fuelled by the Indian Space Research Organisation (ISRO) and an expanding private sector, which has seen the emergence of nearly 200 startups in recent years. These startups are driving innovation, offering space-based products and services that are more affordable, accessible, and tailored to the evolving market demands. The successful launches of the Skyroot Vikram-S and Agnikul Agnibaanrockets, developed by private Indian firms, highlight the sector’s vast potential in satellite manufacturing, launch vehicles, and downstream applications.

Government Reforms Driving Innovation

Recognising the sector’s potential, the Indian government has enacted several key reforms. These include the establishment of the Indian National Space Promotion and Authorization Centre (IN-SPACe) to regulate space activities, the creation of NewSpace India Limited (NSIL) to provide launch services, and the announcement of the Indian Space Policy 2023, which enables end-to-end private sector participation across all areas of space activities. The liberalisation of Foreign Direct Investment (FDI) in 2024 has further opened doors for foreign partnerships with Indian space companies.

Financial Support for the Space Industry

On October 24, 2024, India’s space sector achieved a major milestone as the Union Cabinet, led by the Honourable Prime Minister, approved a dedicated INR 1,000 crore venture capital fund under IN-SPACe. Further strengthening this momentum, IN-SPACe launched a ₹500 crore Technology Adoption Fund in February 2025. These initiatives are set to drive innovation, foster startup growth, and enhance India’s position in the global space industry.

Expanding India’s Global Footprint in Space Diplomacy

On the global front, India has expanded its commercial space footprint through space diplomacy and attracted global investment, totalling approximately USD 300 million in the past three years. Collaborating with over 40 countries and participating in platforms such as the US-India Civil Space Joint Working Group and the Quad Commercial Space Cooperation, India is forging new frontiers. In 2023, India became a signatory to the Artemis Accords, a US-led initiative to establish norms for lunar exploration and future manned missions to the Moon and Mars. This step not only aligns India with international space norms but also reinforces its role in shaping the future of space exploration.

Partnerships with countries like the United States, exemplified by the NASA-ISRO Synthetic Aperture Radar (NISAR) and astronaut training for the Gaganyaan mission, further elevate India’s standing. These collaborations are more than just symbolic—they are strategic, providing India with access to cutting-edge space technologies and expertise.

Policy and Regulatory Enhancements

As India pursues its vision of becoming a global space leader, further collaborative efforts by the government and industry to drive innovation, ensure policy coherence, and develop necessary infrastructure are essential. By continuing efforts to refine regulations around satellite licensing, frequency allocation, and data sharing, the government can further enhance the ease of doing business in the space sector. Key areas that need attention include implementing streamlined regulatory processes, establishing a single-window system for approvals, and improving coordination among the various ministries and agencies overseeing the space industry.

Boosting Domestic Manufacturing and R&D

Special efforts from all stakeholders are essential to boost domestic manufacturing. This can be achieved by developing shared infrastructure, launch facilities, and testing labs, alongside creating space industry clusters that unite manufacturers, suppliers, and service providers for collaboration and innovation. Establishing space innovation zones where startups and established companies co-create solutions for manufacturing challenges will further strengthen this effort. The recent decision to open up the space sector further to FDI is promising, holding substantial potential to benefit domestic players by fostering a mutually beneficial environment for both foreign and local companies. To nurture the development of advanced technologies, increased funding for research and development (R&D) is crucial.

Corporate Involvement in the Space Sector

On the industry front, Indian corporates must take a more active role in promoting incubators and accelerators to nurture the next wave of space startups. More Indian companies should step up to complement government and investor efforts by providing capital to space tech startups, helping them overcome funding challenges and drive innovation.

Indian corporates should collaborate with academic institutions to support workforce development and accelerate technology transfer, facilitating the rapid commercialisation of innovative solutions. Corporates should actively pursue partnerships with public agencies like ISRO and IN-SPACe to co-develop technologies, scale operations, and advance technologies for space exploration and satellite communication. These collaborations are essential for advancing the space industry.

The Role of Ground Station Infrastructure

The launch of the Ground Station as a Service (GSaaS) initiative by IN-SPACe presents a major opportunity for Indian industries to develop interoperable ground station networks, enabling seamless global data transmission. To capitalise on this, industries should collaborate with international firms to build state-of-the-art ground station infrastructure.

The Road Ahead

India, over the past decade, has achieved several world-firsts. By harnessing its growing capabilities and strengthening partnerships both domestically and globally, India’s space sector is poised for even greater achievements and is well on the path to realising its ambitions of becoming a leader in the global space arena.