India's Private Space Sector Thrives in 2025 Amid Policy Reforms
Significant Growth in India's Space Sector
New Delhi, Dec 30: The growth of India's private space industry in 2025 can be attributed to consistent government policies and a robust public-private partnership framework, according to Lt. Gen. AK Bhatt (Retd.), Director General of the Indian Space Association (ISpA).
Bhatt emphasized that 2025 was a pivotal year for the nation's space sector, as policy reforms were effectively implemented in areas such as satellite manufacturing, Earth observation, and satellite communications.
“The private sector was the primary driver of growth in 2025, with numerous contracts awarded, production lines set up, and satellites launched, bringing launch vehicles closer to operational status and expanding data-driven services across various sectors,” he stated.
Currently, India's space economy is valued at around $9 billion and is projected to reach $44 billion within the next decade.
Public-private partnerships became a key operational model throughout the space value chain in 2025. India's share of the global space economy, which is about 2% now, is expected to rise to nearly 8% by 2033, largely due to private sector contributions.
“Policy measures such as the New Space Policy 2023, the liberalized FDI Policy 2024, and the Indian Telecommunications Act 2023 have created a predictable environment for long-term private investments,” Bhatt noted.
The liberalization of FDI regulations and the single-window authorization framework by IN-SPACe have encouraged participation from both domestic and international entities.
“In 2025, India’s space ecosystem reached a significant milestone with over 300 active space startups engaged in various sectors including launch vehicles, satellite platforms, and Earth observation,” Bhatt added.
Moreover, private space firms in India progressed from demonstration phases to actual deployment in 2025. Companies like Skyroot Aerospace and Agnikul Cosmos made strides in developing private orbital and semi-cryogenic launch systems, enhancing the competitive landscape of the domestic launch market.
Recently, PM Modi introduced Skyroot’s Vikram-I launch vehicle and the Infinity Campus.
In early and mid-2025, Pixxel launched India's inaugural private satellite constellation, the Firefly series, utilizing SpaceX Falcon 9 rockets to deploy six hyperspectral satellites for advanced Earth imaging.
Digantara expanded its space situational awareness capabilities by successfully launching its first commercial space surveillance satellite, SCOT, while other companies like Bellatrix Aerospace and ThrustWrks showcased their operational capabilities in propulsion and imaging technologies.
Additionally, the Union Budget for 2025-26 reinforced policy support through initiatives such as the National Geospatial Mission, a Fund of Funds for startups, and a dedicated DeepTech Fund of Funds, according to Bhatt.
In FY 2025, private space startups in India secured nearly $150 million in funding, bringing the total to over $617 million.
The establishment 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 have significantly enhanced the funding landscape for space and deep-tech innovation.
Furthermore, IN-SPACe’s Technology Adoption Fund, launched this year with a budget of Rs 500 crore, aims to support private sector innovation by funding startups and MSMEs (up to 60% of costs) to develop commercially viable early-stage space technologies.