New Delhi, India: India is targeting a significant expansion of its space economy, from approximately ₹73,920 crore ($8.4 billion) to ₹3.87 lakh crore ($44 billion) over the next decade, as the government seeks to increase private-sector participation and retain a greater share of commercial space activity within the country.
Dr Vinod Kumar, Director of the Promotion Directorate at the Indian National Space Promotion and Authorisation Centre (IN-SPACe), under the Department of Space, Government of India, said rising demand for low Earth orbit (LEO) satellites for internet connectivity and Earth observation, alongside additional launch capacity in Tamil Nadu, could strengthen the domestic space industry.
Speaking on the sidelines of Viasat: Space for Good 2026 India, organised by Viasat India in strategic partnership with IN-SPACe, Kumar highlighted the role of the Small Satellite Launch Vehicle (SSLV) and a new launch pad at Kulasekarapattinam in Tamil Nadu in supporting the growing market.
“See, demand for LEO satellites is rising for low-orbit internet and earth observation,” Kumar said, pointing to the country’s additional launch capacity. He added that the new infrastructure would help ensure that the resulting business remains in India.
The demand for LEO satellites is being driven by applications including low-orbit internet connectivity and Earth observation. Additional launch capacity is expected to support domestic launch activity and provide opportunities for Indian companies to participate in the expanding commercial market.
The expansion follows space-sector reforms introduced by the government in June 2020 to encourage greater private participation. Kumar said the changes had created opportunities for private companies to undertake activities previously carried out largely by the Indian Space Research Organisation (ISRO).
“Earlier, only ISRO could do end-to-end activities,” he said, explaining that other companies had previously operated mainly as vendors to the national space agency.
IN-SPACe acts as a regulatory and promotional agency for non-government entities in India’s space sector. It provides a single-window mechanism for authorisations and facilitates private companies’ participation in space-related activities.
The Indian Space Policy 2023 and changes to the foreign direct investment (FDI) framework are among the measures intended to encourage investment and broaden private-sector involvement. Together, these reforms are designed to enable Indian companies to undertake a wider range of commercial space activities rather than remain limited to supplying components or services to ISRO.
More than 450 space startups and 300 MSMEs
Kumar outlined the scale of India’s expanding space ecosystem, which includes:
- More than 450 space startups.
- Over 250 other registered startups.
- More than 300 micro, small and medium enterprises (MSMEs).
- Over 50 large space companies.
The figures indicate the range of businesses participating in India’s space industry, from emerging startups to established companies and smaller enterprises.
The government’s approach also includes transferring technologies developed by ISRO to private industry. Around 120 technologies have been transferred to private companies, allowing them to access technologies that can support the development of commercial products and services.
In addition, approximately 640 startups and companies have been selected for grants under various support initiatives. These measures are intended to strengthen private-sector capabilities and help businesses develop products for commercial use.
Financial assistance is another component of the government’s effort to expand the sector. The support mechanisms highlighted by Kumar include a ₹1,000-crore ($113.6 million) venture capital fund and a ₹500-crore ($56.8 million) Technology Adoption Fund. Together, the two funds represent ₹1,500 crore ($170.5 million) in announced funding support.
The venture capital fund is intended to support the space startup ecosystem, while the Technology Adoption Fund is aimed at helping companies adopt and develop technologies. These initiatives complement technology transfers and grants by providing financial support to businesses seeking to strengthen their capabilities.
Private companies can also access ISRO facilities to test their products and satellites. Such access allows companies to validate technologies and improve their technical readiness before commercial deployment.
Kumar said regulatory authorisations take approximately 75 to 120 days, depending on the process involved.
IN-SPACe’s single-window mechanism is intended to facilitate authorisations for non-government entities and support their participation in space-related activities. The stated timeline varies according to the type of approval required.
Spectrum allocation, meanwhile, will continue to be governed by government policy. Kumar said the administrative framework was intended to ensure equal opportunities for all players.
Spectrum access is an important consideration for satellite-based services, including communications, as companies seek to develop and expand commercial applications.
The new SSLV launch pad at Kulasekarapattinam in Tamil Nadu is one of the infrastructure developments highlighted in the report. Combined with rising demand for LEO satellites, the additional launch capacity is expected to support domestic space businesses.
The government is seeking to increase private companies’ participation throughout the commercial space value chain, including technology development, satellite manufacturing, launch services and space-based applications.
India’s space economy is currently valued at approximately ₹73,920 crore ($8.4 billion), accounting for around 2% of the global market. The target of ₹3.87 lakh crore ($44 billion) over the next decade represents an ambition to significantly increase the industry’s economic contribution.
The figures and initiatives outlined by Kumar indicate that the strategy combines policy reform, investment support, technology transfers, access to testing facilities and increased launch capacity. The extent to which these measures translate into sustained commercial activity will be central to India’s effort to expand its position in the global space economy.
