Government Reforms Fuel $9B Space Economy and 440 Startups in India

New Delhi, 15 November – India's space economy now stands at about $9 billion, up from $8.4 billion in 2023, and the nation counts 440 registered space startups, a dramatic increase from a lone entrant in 2014.

A government fact sheet shows that cumulative investment in the sector rose from $100.5 million in FY 2021‑22 to $618.5 million by 31 March 2026 – a growth of more than six times. This financial surge is paired with policy reforms that aim to move beyond a solely government‑driven operational model.

The commercial arm NewSpace India Limited (NSIL), launched in March 2019, was initially created to act as the space department's commercial entity. Its responsibilities have since expanded to include commercialisation of publicly funded technologies, aggregating demand from government and private customers, and marketing and selling services both domestically and abroad. NSIL's revenue leapt from ₹321.77 crore in FY 2021‑22 to over ₹3,000 crore in FY 2024‑25, and it has executed 118 agreements covering the transfer of 83 ISRO technologies.

To further streamline private sector involvement, the Indian National Space Enhancement and Authority Center (In‑Space) was established as an autonomous agency under the space department. In‑Space offers a single‑window for regulatory approvals, promotes private participation, authorises missions, and provides access to ISRO facilities while overseeing safety, licensing, and orbital coordination.

By 31 January 2026, In‑Space had facilitated 71 technology transfers to industry and startups. By mid‑2026, it had granted 113 authorisations to 52 non‑government entities, including 18 startups. Six Indian NGOs have launched 18 satellites, and 25 payloads are slated for the PSLV Orbital Experimental Module platform.

The reforms announced on 24 June 2020 were intended to capture the rapid growth of the global commercial space market and augment industrial participation. The central cabinet's endorsement of these measures marked a shift toward a public‑private partnership framework, encouraging competition and commercial activity.

Mid‑2026 statistics indicate the space sector received 11 foreign‑direct investment proposals amounting to ₹1,745.40 crore, and India’s global partnerships rose to over 300 agreements with 61 countries and five multilateral organisations.