India’s Space Industry Witnesses Major Growth in 2024 with Private Sector Push

Lt. Gen. AK Bhatt (Retd.)

Lt. Gen. AK Bhatt (Retd), Director General, Indian Space Association (ISpA) said, as India continues to solidify its position as a global space leader, 2025 is poised to be a year of transformative developments. Aided by progressive government reforms, a thriving startup ecosystem, and dynamic public-private collaborations, the Indian space sector is on the brink of unlocking its vast potential.

Government Reforms and Support to Propel India’s Space Ambitions

A key milestone this year was the announcement of the long-awaited liberal FDI policy in the space sector, allowing 100% FDI under the automatic route for satellite components and systems, up to 74% for satellite manufacturing and operation, and 49% for launch vehicles and spaceports. Also, the establishment of the ₹1,000 crore VC Fund being managed by IN-SPACe has further bolstered startups and private players. The Cabinet approved Phase III of the Space-Based Surveillance (SBS-III) project, targeting the launch of 52 satellites to enhance surveillance, which would involve the manufacturing of 31 satellites by the private sector and hence would provide immense opportunities to the private industry. The year also witnessed the laying of the foundation stone for India’s second spaceport in Kulasekharapattinam, Tamil Nadu by the Hon’ble Prime Minister.

The Indian government’s continued focus on strategic policy reforms not only open the door for significant private sector investment but also ensure that India stays at the forefront of global space innovation. With the continuous support from the government and the push for public.

Revolutionizing Space with Rocket/Satellite Launches and Startup Fundings

In April 2024, Tata Advanced Systems Limited (TASL) and Satellogic Inc. launched India’s first private sub-metric high-resolution Earth Observation satellite. Shortly after, Agnikul Cosmos made history with the launch of “Agnibaan – SOrTeD,” the world’s first rocket powered by a fully 3D-printed, semi-cryogenic engine. Funding for Indian space-tech startups reached $76.79 million in 2024, bringing total funding to $463.24 million till date. Notable funded startups include Pixxel, GalaxEye, Dhruva Space, XDLink Labs, Piersight, and EtherialX.

The private space sector is witnessing a major growth in the startup ecosystem driven by favorable policy reforms like the liberal FDI policy announced this year. We believe this will give India, access to the latest tech advances and much-needed funds not only from the country but from international investors too for further innovations.

Public-Private Partnerships to Drive India’s Space Sector Revolution

This year, ISRO’s commercial arm, NSIL, invited private firms to apply for the end-to-end manufacturing of the Launch Vehicle Mark-III, used in Chandrayaan-2 and Chandrayaan-3. IN-SPACe also called for initial bids from domestic companies to design, build, and operate Earth Observation satellites. These initiatives mark the Centre’s push to become a key customer for India’s private space sector through a public-private partnership (PPP) model.

The public-private partnership model is crucial in transforming India’s space sector. By combining the strengths of both public institutions and private players, India can not only boost its capabilities in satellite technology but also emerge as a global leader in applications ranging from climate monitoring to defense. India’s push to enhance its capabilities comes at a critical time when global demand for satellite-based data is increasing, with numerous players providing Value-Added Services (VAS) and Earth Observation services joining the market in the last five years. The growing anticipated demand for satellite-based data, particularly in North America, Europe, and Asia, creates immense opportunities for India to scale its space-tech industry.

Satellite Communications bridging the Digital Divide

Marking a significant milestone for India’s burgeoning satellite communication sector, the Telecommunications Act 2023, last year announced the landmark legislation paving the way for the administrative allocation of satellite spectrum in India.

We expect fast forward decision by Department of Telecommunications which would help the satcom players to start their services in India as soon as possible to help connect the unconnected areas and not lose on opportunity costs.

Opportunities and Developments Awaited in 2025

As startups like Skyroot and Agnikul have completed their sub-orbital launches, we expect the crucial orbital launch in 2025. A new competitor will be the SSLV as ISRO has decided the technology transfer for the launch vehicle to the private players which will create an interesting market for launch vehicles in India. We expect Pixxel to expand its satellite constellation with the ultimate aim of total 36 satellites in the low earth orbit. Another domain where the private sector will also participate is earth stations allowing players to have earth stations-as-a-service.

The downstream sector also shows immense opportunities, especially in agriculture and infrastructure. The Ministry of Road Transport and Highways (MoRTH) is piloting FASTag GPS, a satellite-based toll collection system to replace the current FASTag system for toll payments on expressways, a move that could revolutionize road payment systems. In agriculture, satellite data has significantly boosted banking and insurance services, driving efficiency and growth in the sector.

The coming years will be pivotal for India’s space sector, with rapid advancements driven by strategic collaborations, cutting-edge technology, and the growing involvement of the private sector. With the right policies and continued innovation, India is poised to become a global leader in space exploration, satellite services, and applications that will benefit various industries, including agriculture, infrastructure, and defense.