Sriharikota (Andhra Pradesh) [India], July 18 (ANI): India’s space sector has undergone a historic transformation driven by the Government of India’s forward-looking reforms. With the launch of Vikram-1–India’s first privately developed orbital rocket by Skyroot Aerospace–the nation’s growing private space ecosystem has demonstrated the significant impact of these policy changes.
The Indian Space Policy 2023 has opened the entire space value chain to private participation, fostering innovation, investment and enterprise across the space ecosystem. Indian industry is now participating in satellite manufacturing, launch services, space applications and downstream services.
The impact of these reforms is already visible in the numbers. India’s space startup ecosystem has grown from just one startup in 2014 to over 400 in 2026, reflecting the rapid expansion of private participation and innovation across the space sector.
Government reforms have also accelerated the growth of India’s space economy. Valued at approximately USD 8.4 billion today, the sector is projected to grow fivefold to USD 40-45 billion by 2030. It is further aimed to reach USD 100 billion by 2040. Sustained Government support, enabling regulations and strong public-private partnerships continue to drive this growth, positioning India as a global hub for space technology, manufacturing, innovation and commercial space activities. Read More on Building India’s Space Future: INDIA’S SPACE ODYSSEY
Vikram-1, developed by Skyroot Aerospace, is India’s first privately developed orbital launch vehicle, capable of placing 350 kg into Low Earth Orbit (LEO). Orbital launch vehicles deploy satellites into stable Earth orbits, supporting communication, navigation, Earth observation and scientific research, according to the release.
It is built with an all-carbon composite structure, reliable solid-fuel boosters and a 3D-printed liquid engine. Vikram-1 showcased India’s growing private-sector launch capabilities.
The mission deployed multiple customer payloads into LEO at an altitude of 450 kilometres (280 miles). These include Skyroot’s SCOPE satellite, DCUBED’s technology demonstration payload, Grahaa Space’s SOLARAS S3 satellite, and Cosmoserve Space’s Embrace, a robotic arm designed to capture orbital debris.
The maiden flight carried two symbolic payloads–“Cosmic Bloom”, a floral-shaped artwork, and an 18-karat gold micro-rocket. The micro-rocket features microscopic sculptures of C. V. Raman, Vikram Sarabhai and A. P. J. Abdul Kalam, each smaller than a grain of rice, paying tribute to India’s pioneering scientists.
The Government of India has taken profound steps by introducing key reforms in the space sector to expand private sector participation and unlock new opportunities for innovation.
The Government notified the Indian Space Policy 2023, allowing Non-Government Entities (NGEs) to take part across the entire space value chain. This move opened doors for private players to space-related activities in India. The policy aims to drive innovation in technology, encouraging fresh ideas and advancements within the sector. Alongside this, the policy also encourages international collaboration, fostering partnerships that support peaceful exploration of space. Collectively, these steps mark a significant shift toward a more open and inclusive space ecosystem in India.
The Indian National Space Promotion and Authorisation Centre (IN-SPACe) acted as an autonomous single-window agency to authorise and promote space activities by Government entities and NGEs. Strengthened by the Indian Space Policy 2023, IN-SPACe also provides a stable and predictable regulatory framework and facilitates end-to-end industry participation. Additionally, it enabled access to ISRO facilities, technologies and technical expertise, and streamlined approvals through transparent guidelines. As of June 2026, IN-SPACe has registered over 4,500 organisations, issued 133 authorisations, and signed 106 Memoranda of Understanding.
Additionally, as of February 2026, IN-SPACe facilitated USD 150 million in investments into Indian space startups during CY 2025, with the top 10 startups securing a confirmed order book of the same value. By June 2026, IN-SPACe had also facilitated 118 technology transfer agreements and signed 189 Joint Project Implementation Plans (JPIPs), Technology Partnership Agreements (TPAs) and Business Partnership Agreements (BPAs), accelerating technology commercialisation and industry collaboration.
IN-SPACe Seed Fund scheme provides early-stage financial assistance to space startups and Micro and Small Enterprises. It supports them in developing innovative space technologies and practical applications for various uses. Moreover, the scheme offers grants of up to ₹1 crore to eligible applicants working in this space. Along with funding, it also provides mentorship, training, and networking support to help startups grow. Additionally, the scheme grants funds to Indian space startups working on agriculture-related technologies. It supports solutions for disaster management and urban development that rely on space technology.
₹1,000 crore Venture Capital (VC) under IN-SPACe aimed to accelerate private participation in the space sector. This fund provided early-stage capital to promising startups working in space technology and related fields. It also attracts private investment into the sector while supporting the production of domestic space startups. The initiative aims to expand India’s space economy fivefold over the coming decade. The fund will be deployed over five years, starting from FY 2025-26 through FY 2029-30. Annual investments under this fund will range between ₹100 crore and ₹250 crore.
IN-SPACe introduced the Technology Adoption Fund (TAF). This fund aimed to accelerate the deployment of indigenous space technologies developed by NGEs. It also supports the transformation of early-stage technologies into commercially viable products for the market. The scheme offers funding of up to 60% of the project cost for startups and MSMEs. Large industries can receive funding of up to 40% of their project cost. This funding is subject to a maximum limit of ₹25 crore per project.
The Indian Space Policy 2023 defined the role of NewSpace India Limited (NSIL) as ISRO’s commercial arm. NSIL manufactures and procures space systems on commercial principles. It also delivers end-to-end space solutions to both Government entities and NGEs. NSIL further expands private participation through PSLV productionisation and small satellite technology transfer. It also supports satellite services while marketing space products and spin-off technologies.
Over the years, NSIL has witnessed a tenfold increase in revenue, reflecting its expanding commercial footprint in the global space sector. As of December 2025, over 70 Technology Transfer Agreements had enabled the transfer of ISRO-developed technologies to industry, accelerating their commercialisation.
As of July 2026, NSIL has launched a total of 141 satellites, including 138 international/customer satellites and 3 Indian satellites, reinforcing India’s position as a trusted global launch service provider.
The Foreign Direct Investment (FDI) policy for the space sector was liberalised to make it more investor-friendly. The revised policy permits up to 74% automatic FDI in satellite manufacturing and operations, 49% automatic FDI in launch vehicles and spaceports, and 100% automatic FDI in the manufacturing of satellite components and subsystems. The reform is expected to accelerate investments, promote technology transfer and collaborative research, and further improve the ease of doing business in India’s space sector.
India’s space sector stands at the threshold of a new era, driven by Government-led reforms and a vibrant private ecosystem. The Indian Space Policy 2023, liberalised FDI norms, and dedicated funding initiatives have opened the entire space value chain to any potential players.
These reforms have fostered a dynamic ecosystem marked by growing startups, indigenous innovation, and expanding commercial activities. Moreover, as Vikram-1 prepares for liftoff under Mission Aagaman, it would represent more than a technological milestone. It reflects the growing confidence and capabilities of India’s private space industry.
The journey from ISRO-led missions to a thriving space ecosystem demonstrates the success of the Government’s reform agenda. With sustained policy support, public-private partnerships, and technological innovation, India is well positioned to emerge as a leading global space power and a key driver of the future space economy. (ANI)
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