India's Space Start-ups

How India opened its space sector to private companies from 2020, the start-ups that emerged, and the goal of growing India's share of the global space economy.

For decades, India’s space activities were almost entirely run by ISRO. In 2020, the government announced major reforms opening the space sector to private companies.

The reforms

IN-SPACe, the Indian National Space Promotion and Authorisation Centre, was created in 2020 to authorise and support private space activities.
NewSpace India Limited, a public sector company, commercialises ISRO technologies and launch services.
The Indian Space Policy 2023 set out roles for private firms across launches, satellites and services.
In 2024, India eased foreign direct investment rules for the space sector, allowing up to 100 percent foreign investment in some activities.

The start-ups

Hundreds of space start-ups have emerged, including:

Skyroot Aerospace, which launched Vikram-S, India’s first privately developed rocket, in November 2022.
Agnikul Cosmos, which launched a rocket with a 3D-printed engine in 2024.
Companies building small satellites, Earth observation services and satellite components.

The goals

India’s share of the global space economy is small, estimated at around 2 percent. The government has set targets to grow India’s space economy substantially, with a vision of reaching around 44 billion dollars by 2033, including a larger share of global markets.

Advantages and challenges

India’s advantages include ISRO’s experience and facilities, a large pool of engineers and low costs. Challenges include raising large amounts of capital, competing with established global firms and building a supportive regulatory framework.

From ISRO engineer to founder

Two former ISRO engineers leave the agency to found a rocket company. Under the new rules, they can use ISRO's testing facilities and launch sites, paying fees. They raise money from venture capital and develop a small rocket for launching small satellites. This path, from public agency to private start-up, was difficult before the 2020 reforms.

Thinking private space firms replace ISRO

The reforms aim to let private firms handle commercial activities while ISRO focuses on advanced research and exploration. Public and private sectors are meant to complement each other.

Key takeaways

India opened its space sector to private companies in 2020, creating IN-SPACe.
The Indian Space Policy 2023 and 2024 foreign investment rules supported private activity.
Skyroot launched India's first private rocket in 2022, and hundreds of start-ups emerged.
India aims to grow its small share of the global space economy substantially.