India's space economy is estimated to be worth around $9 billion and is expected to grow to $40-45 billion over the next decade, thanks to the rise of a startup ecosystem and policy reforms, according to government data cited by IANS.
As India celebrates National Space Day this Sunday, the country's space industry witnessed significant growth, with the number of registered space start-ups increasing from 1 in 2014 to approximately 440 as of August 2026.
Government data as cited by PIB showed that Private investment in India's space industry increased to $100.5 million in 2021-22 to $618.5 million as of March 31, 2026.
The government also authorised 52 non-governmental organisations for 113 clearances, for satellite operations, payloads and launch services by mid-2026.
The Indian Space Policy 2023 aims to strengthen the role of private players across the value chain. The policy also lays out the roles of NewSpace India Limited (NSIL) and IN-SPACe.
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What Is IN-SPACe?
The Indian National Space Promotion and Authorisation Centre (IN-SPACe) was established in June 2020 as an autonomous agency under the Department of Space. Its role includes promoting and authorising private sector space activities through a single-window mechanism. As per the IANS report cited by AP7AM, IN-SPACe had facilitated 71 transfers of ISRO technologies to industry and startups as of January 31,2026. By mid-2026, 113 authorisations had been granted to 52 non-government entities.
What Is NSIL?
NewSpace India Limited (NSIL) is ISRO's commercial arm to facilitate launch, satellite and space based services and to transfer ISRO technologies to the industry. NSIL's turnover has grown from Rs 321.77 crore in FY 2021-22 to over Rs 3,000 crore in FY 2024-25. This has been attributed to the increased commercialization of India's space programme.
Foreign Investment Rules
India liberalised its space sector foreign direct investment (FDI) rules in February 2024 according to the IANS report. Under the rules cited in the report, upto 74% FDI is permitted automatically for satellite manufacturing and operations. Upto 49% FDI is permitted through the automatic route for launch vehicles and spaceports while 100% automatic route FDI is permitted for manufacturing satellite and ground segment components according to the report.
Government Funding For Space Startups
The government has also introduced dedicated funding mechanisms to support private space companies:
- The IN-SPACe Seed Fund Scheme supports early stage space startups.
- A Rs. 1,000 crore Venture Capital Fund has been created to provide growth capital to the sector.
- A Rs. 500 crore Technology Adoption Fund has been established to support wider deployment of space technologies.
- The Satellite Bus as a Service (SBaaS) Scheme has received an allocation of Rs. 75 crore to support satellite bus development.
What Does This Projection Mean
The projected value of India's space industry, which is estimated to cross $40-45 billion by the early next decade, emphasizes its efforts to transition from a government dominated system to a broader commercial ecosystem that will also comprise startups, private investment, technology transfer, and international clients. Both the growth in the number of startups and the inflows of private capital in the sector have witnessed a spike post-2020 reforms.
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