Space-Tech Economy

According to the India Spacetech-2026 report, titled “India’s Space Odyssey” (released by venture capital firm Arkam Ventures) India’s space economy is projected to become World’s Third-Largest Space-Tech Economy by 2030.

Key Highlights of the Report

• Key Projections 
  • Space Economy Size: India’s space economy is expected to reach $40 billion by 2030 (from $13 billion).
  • Global Ranking: Structural shifts in the ecosystem are projected to make India the third-largest space-tech economy globally by 2030.
  • Growth Rate: The sector is forecast to grow at double the global average growth rate.
  • Investment Projections: The report estimates $3–3.5 billion in venture capital and private equity investments flowing into Indian spacetech startups over the next five years
• Drivers of Space-Tech Growth:
  • Cost-Efficient Engineering: India’s tradition of frugal engineering has enabled low-cost, high-impact solutions in space missions.
  • Deep Manufacturing Capabilities: Strong domestic manufacturing supports end-to-end space-tech development.
  • Startup-Led Innovation: A new generation of startups is building advanced space technologies for global customers.
• Shifting Investor Focus:
  • Move Beyond Launch Hardware: As satellite data becomes more commercially viable, investor interest is shifting downstream, away from capital-intensive launch systems.
  • Growth Areas: Increasing focus on data platforms, analytics, climate intelligence, and application-layer solutions built on top of space infrastructure.
  • Strategic Shift: Funding is moving closer to applications and intelligence layers, rather than being confined to launch vehicles
• Startup Ecosystem:
  • Scale of Startups: Over 300 space-tech startups have emerged in the last five years.
  • Key Domains: These startups operate across satellite manufacturing, Earth observation, launch vehicles, and in-space solutions.
  • Policy Trigger: More than two-thirds of capital flows into Indian space-tech have occurred in the last five years, following the formulation of India’s space policy.
• Global Competitiveness of Indian Companies:
  • Top Global Players: The report forecasts five Indian companies to feature among the world’s top 10 across the space-tech value chain.
  • Leadership Areas: These include vehicle launch, space situational awareness, Earth observation satellite manufacturing, and space debris handling.
• Operational Projections:
  • Launch Services: Indian private players are expected to conduct 40–45 launches annually for global customers.
  • Satellite Manufacturing: India may manufacture one-third of the world’s Earth Observation Satellites.
  • Exports: Indian firms are projected to emerge as major exporters of Avionics, Global Navigation Satellite System (GNSS), Satellite Communications and ground Radio Frequency systems.

Key Indian Space-Tech Startups and Innovations

• Skyroot Aerospace: It became the first private Indian company to launch a rocket with Vikram-S in 2022; now developing Vikram-I, a commercial orbital launcher using carbon-composite stages and rapid manufacturing.
• Agnikul Cosmos: Developed Agnibaan, powered by the world’s first fully 3D-printed single-piece rocket engine, built in Chennai; operates India’s first privately run launchpad at Sriharikota.
• Pixxel: Building one of the world’s first hyperspectral imaging satellite constellations, supporting agriculture, climate modelling, ESG monitoring, and pollution tracking; partnered with NASA for hosted payload missions.
• Dhruva Space: Focuses on satellite hardware, mission integration, modular satellite buses, deployers, and onboard computers, supporting in-orbit demonstration missions

Steps Taken to Boost Space Economy in India

• Indian Space Policy, 2023: The policy defines roles for ISRO, IN-SPACe, and private players, focusing on commercialization and R&D, with ISRO focusing on strategic missions.
  • Foreign Direct Investment (FDI) Liberalisation in Space Sector:
    • The policy permits up to 100% FDI under the automatic route for manufacturing satellite components, subsystems, ground segments, and user segments.
    • Up to 74% FDI under the automatic route is allowed for manufacturing and operating complete satellites, while investments beyond this threshold require government approval.
• IN-SPACe (Indian National Space Promotion and Authorization Centre): IN-SPACe acts as the single-window regulatory and facilitative body for promoting private sector participation in India’s space ecosystem by providing policy clarity, authorisations, and handholding support.
• NewSpace India Limited (NSIL): It functions as the commercial arm of ISRO, responsible for monetising space technologies, satellite launches, and services, thereby expanding India’s presence in the global space economy.
• Budgetary Support: In Union Budget 2025–26, the Government allocated approximately ₹13,416 crore to the Department of Space, reflecting sustained public investment in space infrastructure, research, and strategic missions.
• Defence Space Agency (DSA) and DSRO: In 2019, India established the Defence Space Agency (DSA) and Defence Space Research Organisation (DSRO) to coordinate military use of space assets and integrate civilian space technologies for defence applications.

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