How India is orchestrating its rise in spacetech

Indian space market is currently on the verge of a massive structural shift that will see its valuation leap to an estimated $44 billion by 2035 from $8.4 billion.

This five-fold expansion represents one of the most ambitious growth trajectories in the global economy, as the nation moves from a government-led research phase to a technology-intensive commercial services model.

According to the Economic Survey 2025-26, this evolution is not merely a matter of prestige but a strategic choice to embed the country as an indispensable node in the global space value chain.

By leveraging a combination of indigenous innovation and a rapidly maturing private ecosystem, the sector is positioning itself to capture a significantly larger share of the international market than its current 2%.

Commercial scaling

The most visible engine of this growth is the success of India’s commercial launch services, which have established the nation as a reliable and cost-effective partner for global satellite operators.

Between 2015 and 2024, the country successfully launched 393 foreign satellites for 34 different nations, earning a substantial foreign exchange total of approximately $143 million and € 272 million.

This track record has transformed the perception of the Indian space programme from a domestic utility into a competitive global service provider. The Economic Survey notes that these launches are particularly sought after in an era of rising global demand for small satellite constellations, where India’s reliability provides a unique advantage.

Complementing this international success is the remarkable financial performance of NewSpace India Limited (NSIL), which functions as the central commercial interface for the country-s space operations.

The revenue for NSIL has experienced a surge, rising to Rs 2,940 crore by FY23 from Rs 322 crore in FY20. Projections for FY25 suggest this momentum is accelerating, with revenues expected to reach Rs 3246.1 crore.

This growth is being driven by a transition toward demand-driven missions, the leasing of satellite capacity, and end-to-end commercial project execution.

The Economic Survey stated that India’s private “NewSpace” ecosystem has scaled across manufacturing, launch vehicles, data analytics and downstream services, attracting over Rs 1,000 crore in private funding in FY23. Commercial leasing of transponder capacity, global sale of Earth observation imagery, and growing adoption of navigation and mobility services are expanding downstream service revenues.

Private ecosystem

The foundational shift toward private sector participation is anchored in the Indian Space Policy of 2023 and the establishment of IN-SPACe as a single-window regulatory authority. These reforms have removed historical barriers to entry, allowing non-governmental entities to manufacture launch vehicles, operate satellites, and provide data analytics.

The result has been the emergence of over 300 space startups that are actively contributing to innovations across the technological spectrum. To support this fledgling industry, the government has approved a Rs 1,000 crore venture capital fund and a Rs 500 crore Technology Adoption Fund specifically to accelerate startup growth and technology-led development.

This is further bolstered by liberalised Foreign Direct Investment norms, which now permit up to 100% investment through the automatic route in specific categories.

The Economic Survey emphasised that this policy shift is essential for building strategic resilience.

The Space Sector Reforms of 2020, followed by the Indian Space Policy–2023, have created a structured and forward-looking framework to enable private-sector participation and enhance India’s role in the global space economy, it noted.

Technological frontiers

Technological milestones achieved in late 2025 further illustrate India’s deepening capabilities. The country became only the fourth nation to successfully demonstrate autonomous satellite docking through the SpaDeX mission, a critical requirement for future space station operations.

Additionally, the LVM3-M6 vehicle successfully launched the BlueBird Block-2 communication satellite, which represents the heaviest payload ever placed into Low Earth Orbit in the history of the Indian space programme. 

Currently, India maintains 56 active space assets, comprising a diverse fleet that includes 20 communication satellites, 21 earth observation platforms, and 8 navigation satellites. This infrastructure provides the data backbone for essential services in defence, logistics, and urban planning.

The downstream utility of these assets is particularly relevant for national development. The Bhuvan platform, which utilises high-resolution imagery, is being used to monitor 296 watershed development activities and track vegetation green cover along all national highways.

In the Himalayan region, these indigenous sensor networks are combined with machine learning models to provide real-time landslide alerts, demonstrating how space technology directly enhances disaster preparedness in ecologically fragile zones.

Looking toward the middle of the century, the national vision is defined by the Space Vision 2047 roadmap. This includes the ambitious target of establishing the Bharatiya Antariksh Station by 2035 and conducting the first manned Indian mission to the moon by 2040.

These goals are supported by several high-priority projects approved by the government, including the Gaganyaan follow-on mission and the Chandrayaan-4 lunar sample return mission.