India’s Space Economy Set to Quadruple to $45 Billion as Startups and Private Investment Surge

India's space economy has grown to around $9 billion and is projected to expand to $40-45 billion over the next decade, driven by a rapidly growing startup ecosystem, increased private investment and policy reforms that have opened the sector to greater industry participation.

The latest government data, released as India observed National Space Day on Sunday, shows how dramatically the country's private space ecosystem has expanded. The number of registered space startups has risen from just one in 2014 to around 440 by August 2026.

Private investment has also increased sharply. Funding in India's space sector rose nearly six-fold from $100.5 million in 2021-22 to $618.5 million by March 31, 2026. Of this, $187 million was invested during 2026 alone.

By the middle of 2026, authorities had granted 113 authorisations to 52 Non-Government Entities (NGEs), including 18 startups, for activities such as satellite operations, payload development and launch services.

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A major turning point came in 2020, when India opened its space sector to private companies and startups. The move allowed private players to participate in areas ranging from satellite manufacturing and launch systems to space-based applications.

The Indian Space Policy 2023 further broadened this participation by defining a larger role for private companies across the space value chain. It also clarified the responsibilities of NewSpace India Limited (NSIL) and the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

NSIL, the commercial arm of ISRO, provides launch, satellite and space-based services and helps transfer ISRO technologies to Indian companies. Its revenue increased dramatically from Rs 321.77 crore in 2021-22 to more than Rs 3,000 crore in 2024-25, reflecting the growing commercialisation of India's space capabilities.

IN-SPACe serves as a single-window mechanism for facilitating private-sector participation in space activities. It had facilitated 71 transfers of ISRO technologies to private industry and startups as of January 31, 2026.

The government has also made it easier for foreign investors to participate in India's space sector. FDI rules were liberalised in February 2024, allowing up to 74 per cent foreign investment through the automatic route in satellite manufacturing and operations, 49 per cent in launch vehicles and spaceports, and 100 per cent in satellite and ground-segment components.

Several funding programmes have been introduced to help startups move from early-stage ideas to commercially viable technologies. The IN-SPACe Seed Fund Scheme provides support to emerging companies, while the Rs 1,000 crore Venture Capital Fund is designed to provide growth capital.

A separate Rs 500 crore Technology Adoption Fund aims to encourage the wider deployment of space technologies, while the Satellite Bus as a Service (SBaaS) Scheme has received Rs 75 crore to support the development of satellite bus capabilities.

India's launch activity is also increasingly reflecting the sector's commercial potential. Between July 2023 and June 2026, the country successfully completed 12 launch vehicle missions, carrying 11 Indian satellites as well as nine satellites belonging to international customers.

The rapid expansion of startups, private capital and commercial launch activity suggests that India's space programme is moving beyond its traditional government-led model. With policy reforms encouraging private participation and public funding helping companies develop new technologies, the space sector is increasingly emerging as a major area of investment, innovation and high-skilled employment.

If the projected $40-45 billion valuation is achieved over the next decade, India's space economy would represent a significant expansion from its current size and strengthen the country's position in the global commercial space market.