India’s space economy projected to reach $40-45 billion over next decade

India’s space economy has reached $9 billion and could grow to $40–45 billion over the next decade, driven by startups, private investment and policy reforms. Space startups have surged to around 440, while liberalised FDI and government funding strengthen private participation

New Delhi: India’s space economy has reached $9 billion and is projected to reach $40–45 billion over the next decade, driven by a robust startup ecosystem and policy reforms, according to latest government data.

As India marked National Space Day on Sunday, the country’s space ecosystem has expanded rapidly, with registered space startups rising from 1 in 2014 to around 440 in 2026 (till August). Private investment in India’s space sector surged nearly six-fold, climbing from $100.5 million in 2021–22 to $618.5 million by March 31, 2026, with $187 million recorded during 2026 alone.

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By mid-2026, 113 authorisations had been granted to 52 Non-Government Entities (NGEs) out of which, 18 are startups for satellite operations, payload establishment and launch services, according to official data. India opened its space sector to private participation in 2020, enabling industry and startups across satellites, launch systems and space applications. This marked a major shift towards a broader national space ecosystem.

The Indian Space Policy 2023 further expanded private participation across the space value chain. It also defined the roles and responsibilities of NewSpace India Limited (NSIL) and Indian National Space Promotion and Authorisation Centre (IN-SPACe), said an official statement.

NSIL, the commercial arm of ISRO, provides launch, satellite and space-based services and transfers ISRO technologies to Indian industry. Its revenue rose from Rs 321.77 crore in FY 2021–22 to over Rs 3,000 crore in FY 2024–25, reflecting the growing commercialisation of India’s space programme.

IN-SPACe enables private space activities through a single-window mechanism. It facilitated 71 ISRO’s technology transfers to industry and start-ups as on January 31, 2026.

Moreover, foreign direct investment (FDI) rules in February 2024 were liberalised for the space sector. Up to 74 per cent FDI is permitted automatically for satellite manufacturing and operations, 49 per cent for launch vehicles and spaceports, and 100 per cent for satellite and ground-segment components. Targeted financing is strengthening India’s private space ecosystem.

The IN-SPACe Seed Fund Scheme supports early-stage space start-ups, the Rs 1,000 crore Venture Capital Fund provides growth capital, and the Rs 500 crore Technology Adoption Fund enables wider deployment of space technologies.

Further, The Satellite Bus as a Service (SBaaS) Scheme has been allocated Rs 75 crore to support the development of satellite bus capabilities. Over the last three years (July 2023 to June 2026), India successfully completed 12 launch vehicle missions, carrying 11 national satellites and nine satellites for international customers.