Policy continuity and clear institutional direction, along with an expanding public-private partnership framework, were key factors driving the growth of India’s private space sector in 2025, according to Lt. Gen. AK Bhatt (Retd.), Director General of the Indian Space Association (ISpA). The year marked a pivotal moment for India’s space industry, with policy reforms translating into tangible progress in areas such as launch activities, satellite manufacturing, Earth observation, space data, and satellite communications. Notably, the private sector played a significant role in driving growth, with contracts awarded, production lines established, and data-driven services expanding across various domains.
India’s space economy, currently valued at around $9 billion, is on a clear trajectory towards reaching $44 billion in the next decade. Public-private partnerships emerged as a central operating model in 2025, with India’s share of the global space economy expected to rise from 2% to nearly 8% by 2033, largely due to private industry initiatives. Key policy instruments such as the New Space Policy 2023, liberalized FDI Policy 2024, and the implementation of the Indian Telecommunications Act 2023 provided a stable environment for long-term private investments.
In 2025, over 300 active space startups were operating in India, covering a wide range of space-related activities including launch vehicles, satellite platforms, Earth observation, satellite communications, propulsion, electronics, and downstream analytics. Private space companies in India made significant strides during the year, with advancements from demonstration to deployment. Notable achievements included the progress made by companies like Skyroot Aerospace and Agnikul Cosmos in developing private orbital and semi-cryogenic launch systems, contributing to a competitive domestic launch market.
Prime Minister Modi unveiled Skyroot’s Vikram-I launch vehicle and the Infinity Campus, while Pixxel launched India’s first private satellite constellation, the Firefly series, using SpaceX Falcon 9 rockets. Additionally, Digantara expanded its space situational awareness infrastructure by launching its first commercial space surveillance satellite, SCOT’. Various companies demonstrated operational capabilities in propulsion, launch subsystems, and imaging platforms, further enhancing India’s presence in the private space sector.
Policy support for the space industry was reinforced in the Union Budget 2025-26 through initiatives like the National Geospatial Mission, a Fund of Funds for startups, enhanced credit guarantee mechanisms, and the expansion of Atal Tinkering Labs. Private space startups in India raised nearly $150 million during FY 2025, bringing the total funding to over $617 million. Initiatives such as the operationalization of the Rs 1,000 crore IN-SPACe Venture Capital Fund and the approval of the Rs 1 lakh crore Research, Development, and Innovation Scheme added depth to the funding ecosystem for space and deep-tech innovation. IN-SPACe’s Technology Adoption Fund for Rs 500 crore, launched in 2025, is set to further boost private sector space innovation by supporting startups and MSMEs in developing early-stage space technologies.
