India's Space Industry is predominantly driven by its national space agencyISRO.^[1] The industry includes over 500 private suppliers and other various bodies of theDepartment of Space (DoS)^[2] in all commercial, research and arbitrary regards.^[3] There are relatively few independent private agencies, though they have been gaining an increased role since the start of the 21st century. In 2023, the space industry of India accounted for $9 billion or 2%-3% of theglobal space industry and employed more than 45,000 people.

In 2021, theGovernment of India launched theIndian Space Association (ISpA) to open the Indian space industry to private sectors and start-ups. Several private companies likeLarsen & Toubro, Nelco (Tata Group),OneWeb,MapmyIndia,Walchandnagar Industries are founding members of this organisation.^[4]Lieutenant GeneralAnil Kumar Bhatt was appointed as the Director General of ISpA.^[5]

The Government of India forayed intospace exploration when scientists started to launchsounding rockets fromThumba Equatorial Rocket Launching Station (TERLS),Thiruvananthapuram.^[6][7] The establishment of the space agency lead to the development of small launch vehiclesSLV-3 andASLV, followed by largerPSLV andGSLV rockets in the 1990s, which allowed India to shift larger payloads and undertake commercial launches for the international market. Private firms started to emerge later as subcontractors for various rocket andsatellite components. Reforms liberalising the space sector and nondisclosure agreements came in the late 2010s, leading to the emergence of various private spaceflight companies.

As of 2025, India has launched433 satellites for various foreign countries. There were more than 300 space startups in India in mid 2025 involved in various stages of developing their ownlaunch vehicles, designing satellites and other allied activities.^[8][9][10]

India's interest in space travel began in the early 1960s, when scientists launched aNike-Apache rocket from TERLS,Kerala.^[6][7] TheIndian National Committee for Space Research was subsequently set up, which later became ISRO^[11] functioning under a new independent DoS in the 1970s under thePrime Minister of India.^[12][13]

ISRO joined theInterkosmos program to launch its first satellite,Aryabhata, from the former Soviet Union in 1975.^[14]

SLV-3, a locally developed space rocket, was introduced in 1979, enabling India to undertake orbital launches.^[15] Experience gained from SLV-3 was used to develop ASLV to develop technologies for launching satellites ingeostationary orbit, but this ended up having very limited success and was eventually discontinued.^[16] However, the study of a homegrownmedium-lift launch vehicle went on, which lead to the realisation of the PSLV.^[17]

Antrix Corporation was set up in 1992 to market ISRO's technology, launch services and transfer technology to Indian private firms, dawning the commercial space sector in India.^[18] The PSLV rocket, introduced in 1993, enabled India to launch its polar satellites. Despite initial failures in its first two flights, PSLV had no further failures and emerged as ISRO's primary workhorse for launching domestic and foreign satellites.^[19][20] The development of GSLV andLVM3 subsequently began in the 1990s and 2000s to attain the capability to launchcommunication satellites. However, the launchers didn't become operational until decades later, as India initially faced a great problem in the development ofcryogenic engines.^[21][22][23] Later,NewSpace India Limited (NSIL) replaced Antrix as the commercial arm of ISRO.^[24]

The Indian space program emerged as an economic sector with government-backed investments with official institutions in the military and civilian administrations over decades of engineering. Over four decades, ISRO continued transferring technologies tosmall and medium enterprises (SMEs), leading to there being over 500 suppliers of various components in 2017.^[25]

India's IT industry started engaging in this sector in the 1990s. The Department of Space actively promoted the growth of the sector, leading to the establishment of the manufacturing of various systems. Large mapping projects for various civilian and military requirements were outsourced by the government, which drove the growth of India's private space sector. However, theprivate sector still played a supporting role, while the government continued to dominate the space sector.^[26]

In the late 2010s, a large number of startups started to emerge throughout the country with their own proposals and concepts to develop various satellite technologies and rockets.^[27][28][29]

A range of initiatives to deregulate the private space sector were introduced byNarendra Modi's cabinet in June 2020, and theIndian National Space Promotion and Authorisation Centre (INSPACe) was established for incubating technology into private firms, known as Non-Government Private Entities (NGPEs) by DOS.^[30][31] NGPEs were included as a crucial part of ISRO's Space Communication Policy draft issued in October 2020.^[32] As of 2021, a newSpace Activities Bill and a space policy are being drafted byNALSAR Centre for Aerospace and Defence laws to regulate space manufacturing and the legal aspects of the industry in India.^[33][34]

An amendment was made in the FDI policy for space sector through a gazette notification dated April 16, 2024, called the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024. The liberalized entry routes under the amended policy are aimed at attracting potential investors in the Indian companies in space. As per them, up to 74 per cent FDI for satellite manufacturing & operation, satellite data products and ground segment & user segment are allowed under automatic route. Beyond 74 per cent these activities are under government route. FDI up to 49 per cent is allowed for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft are under automatic route but beyond 49 per cent government permission would be required. The cabinet on February 21 had allowed 74% foreign direct investment (FDI) under automatic route for satellite manufacturing, up to 49% under automatic route for launch vehicles, and up to 100% under automatic route for manufacturing of components and systems.

The new rules will come into effect from April 16 2024.^[35][36][37]

Throughout this time, various nondisclosure agreements and tech transfers have been taking place between ISRO and private entities.^[38][39]

In July 2024,Minister of FinanceNirmala Sitharaman announced that the Indian government will form a $119 million venture capital find for space startups in India.^[40] TheUnion Cabinet of India approved the creation of the venture capital fund in October 2024.^[41] India has more than 400 private space enterprises as of 2024, up from 54 in 2020.^[42] Since 2025, an increasing number of private sector Indian space companies have been setting up offices and forming subsidiaries in the United States to gain access to the American market and compete with domestic U.S. space companies.^[43] Some Indian companies, includingBellatrix Aerospace, a satellite propulsion manufacturer, are establishing manufacturing facilities in the U.S.^[43]

As of May 2025, India is planning to launch 52spy satellites over the next five years, with private sector companies building half of the 52 spy satellites, with ISRO manufacturing the remaining half.^[44] Additionally as of May 2025, technology for ISRO'sSSLV is in the process of beingtransferred to private firms by ISRO.^[44]

The Defence Innovation Organisation (DIO), through its Innovations for Defence Excellence (iDEX) framework, has become a key catalyst in advancing India's indigenous defence and space innovation landscape.^[45] By bridging the gap between defence user requirements and private-sector innovation, DIO promotes dual-use technological development that supports both strategic and commercial applications.^[46] The launch of Mission DefSpace in October 2022 marked a significant milestone—uniting startups, MSMEs, and academia to co-develop solutions in satellite communication, Earth observation, Synthetic Aperture Radar (SAR), AI-driven geospatial analytics, and space situational awareness (SSA).^[47][48] With challenge-based funding, technology mentorship, and procurement-linked incentives, DIO's role has been instrumental in nurturing a sustainable ecosystem for India's growing space-defence industry.^[49]

Under Mission DefSpace, several companies have signed agreements with DIO/iDEX to develop technologies critical for India's military and strategic space applications.^[50] For instance, Sisir Radar Pvt. Ltd., founded by former ISRO Director Tapan Misra, is developing an L- and P-band continuous-wave Synthetic Aperture Radar (SAR) payload along with an unfurlable, electronically steered antenna for small-satellite platforms—enhancing India's all-weather imaging and reconnaissance capabilities.^[51][52]Similarly, Space Kidz India has taken up the challenge of designing CubeSat deployers for microgravity and small-satellite missions, supporting low-cost and rapid satellite deployment for defence and scientific applications.^[53][54] Kepler Aerospace Pvt. Ltd., another participant, is working on CubeSat-class satellite platforms designed for real-time surveillance and communication relays, demonstrating the diversity of innovation emerging through the DefSpace initiative.^[55][56]

Alongside these, firms such as Digantara, Antsys Innovations, SpacePixxel, GalaxEye Space, and InspeCity Space Laboratories are contributing across domains including space domain awareness, RF communications, and on-orbit servicing—collectively reinforcing India's goal of achieving self-reliance and strategic depth in space-defence technologies.^[57][58]

ISRO and DoS continue to remain dominant in the national space sector, having launched more than 100 domestic and more than 300 foreign satellites for 33 countries,^[59] while private firms have gradually been gaining ground.^[1][2][3] In 2019, the space industry of India accounted for $7 billion or 2% of the global space industry and employed more than 45,000 people.^[60][31] Antrix Corporation expects the industry to grow up to $50 billion by 2024 if provided with appropriate policy support.^[61]

In February 2020, there were 35 startups that came up in the space sector, of which three focused on designing rockets, 14 on designing satellites, and the rest on drone-based applications and services sector. The number further grew to over 40 in January 2021.^[8][9] Two companies,Skyroot Aerospace andAgniKul Cosmos, have tested their own engines and are in advanced stages of developing their own launch vehicles,^[62][63] while others have their launchers in the production pipeline and have launched satellites using ISRO rockets.

The space industry has contributed $60 billion to India'sgross domestic product (GDP) between 2014 and 2024. It created 96,000 direct jobs and 4.7 million indirect jobs, according to the Socio-Economic Impact Analysis of Indian Space Programme Report. India now has the eighth-largest space economy in the world, with space sector earnings reaching $6.3 billion as of 2023.^[42][64]

The Indian economy has benefited from a multiplier effect of $2.54 for every dollar earned by the Indian space industry, according to the European consulting firm Novaspace, with India's space industry workforce being 2.5 times more productive than the country's wider industrial workforce.^[64] At acompound annual growth rate (CAGR) of 6%, the Indian space economy which is valued at approximately₹6,700 crore ($8.4 billion) as of 2024 is projected to reach $13 billion by 2025, accounting for 2% to 3% of the worldwide space economy. The entire amount of money invested in ISRO over the past 55 years since its founding is less than NASA's annual budget.^[42] Compared toCNSA, which receives over $18 billion, andNASA, which works with a budget surpassing $25 billion,ISRO's annual budget in 2024 is approximately $1.6 billion.^[65][66]

India's space industry aims to focus on various niches in the space domain, which include retrieving space data, constructing small satellites and cheap launches into orbit.^[67]

• List of private spaceflight companies
• List of Indian satellites
• List of foreign satellites launched by India
• Commercialization of space
• Space manufacturing
• Space colonisation
• Defence industry of India
• Economy of India

• Space industry
• Space programme of India
• ISRO
• Indian private spaceflight companies
• Economy of India

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