India’s strength in space is increasing
For nearly six decades, India’s space journey has been all about ISRO. Missions like Chandrayaan, Mangalyaan, Aditya-L1 and Spadex made India among the selected space countries of the world, but now the Indian space sector has set a new record, where along with the government, private companies have also entered the space race. The biggest example of this change is Hyderabad-based company Skyroot Aerospace. The company successfully launched the country’s first private orbital launch vehicle Vikram-1 on July 18, 2026. This achievement is not just an event of a rocket being launched, but it is an indication that India is now moving beyond government space missions and developing a strong private space industry. Just as companies like SpaceX and Blue Origin along with NASA in America changed the nature of space business, similarly the era of private companies seems to be starting in India too. Let us try to tell you everything in detail from Indian space power to recent missions.
This success did not come suddenly. The reason behind this is the major reforms done by the government in the last few years, policies promoting private investment and the rapidly developing startup ecosystem. Today, more than 400 space startups are working in India and the government is aiming to take the country’s space economy to $100 billion in the next decade and a half. In such a situation, Vikram-1 has become the first major milestone in that new journey.
What is special in Vikram-1
Vikram-1 is India’s first privately developed orbital launch vehicle. Its biggest feature is that it can place a payload of up to 350 kg in the lower Earth orbit i.e. Low Earth Orbit. Made entirely of carbon-composite structure, this rocket has low weight but high strength. It uses solid fuel boosters and 3D printed liquid engines, which puts it in the category of modern launch vehicles. Through this mission, payloads of many Indian and foreign customers were sent into space. These include satellites that monitor the Earth, equipment to test new technologies and technologies related to removing debris present in space. Two symbolic payloads have also been sent in the mission. These include an artwork named ‘Cosmic Bloom’ and a micro rocket made of 18 carat gold, on which the great Indian scientist C.V. Very precise figures of Raman, Vikram Sarabhai and Dr. APJ Abdul Kalam have been created.
How did government reforms change the whole picture?
Earlier, most of the private companies used to manufacture only equipment or parts of machines, but Indian Space Policy 2023 changed the picture of the entire sector. Under the new policy, the entire value chain of the space sector was opened to private companies. Now any Indian company can develop rockets, make satellites, provide launch services, do space data based business and also partner with foreign customers. Along with this, the government made IN-SPACe a single window agency for private companies, so that the process of obtaining approvals becomes easier and the industry can move forward faster.
Industry reached 400 companies from one startup
The impact of government reforms is most visible in the startup ecosystem. In the year 2014, there was only one startup working on space technology in India. Today this number has increased to more than 400. These include companies ranging from rocket makers to startups developing solutions related to satellite, sensors, space data analytics, drones, defense technology and earth observation. Meanwhile, the business of the space ecosystem being developed through IN-SPACe has also increased rapidly. While its revenue in the year 2021-22 was around Rs 322 crore, by 2024-25 it will increase to around Rs 3200 crore.
Government opened the way for investment
The Indian government knows that the industry does not grow by merely changing rules. Therefore, arrangements for financial assistance on a large scale have also been made for private space companies. Through the Seed Fund Scheme launched under IN-SPACe, financial assistance of up to Rs 1 crore is being provided to early stage startups and MSMEs. Apart from this, they are also being provided technical advice, training and opportunities to connect with the industry. Along with this, the government has also created a venture capital fund of Rs 1000 crore, the objective of which is to increase investment in early stage space companies. This fund will invest in a phased manner for the next five years from 2025-26. A Technology Adoption Fund of Rs 500 crore has also been started to take the technology from the laboratory to the market. Under this, startups and MSMEs will be given assistance up to 60 percent of the project cost and big companies will be given assistance up to 40 percent. This will accelerate the commercialization of new technologies.
IN-SPACe has been mentioned two-three times, first let us understand it a bit. This is an institution of the Government of India, which has been created to promote private companies and startups in the space sector. It provides approval, technical support and guidance to private companies for launch, satellite, testing and other space activities. It aims to rapidly expand India’s space ecosystem and space economy by building a bridge between ISRO and private industry.
How much will India’s economy benefit?
The demand for small satellites is increasing rapidly in the world. Thousands of new satellites are to be launched in areas like internet, communications, weather, defence, agriculture, disaster management and earth observation. In such a situation, a big opportunity is being prepared for India. India’s launching cost is considered much lower than America and Europe. This is why if Indian private companies start doing regular commercial launches, they can get orders from companies all over the world. This will increase foreign exchange earnings, give impetus to high-tech manufacturing and also create high-skilled jobs for millions of youth. In the coming years, the space sector can become a big export sector for India like the IT industry.
Which companies will benefit the most?
The benefits of the expansion of the private space sector will not be limited to startups only. New business opportunities may also open up for many listed Indian companies related to defense and aerospace sector. Companies like HAL, BEL, L&T, Data Patterns, Paras Defence, Centum Electronics, MTAR Technologies and Apollo Micro Systems already produce equipment related to aerospace, defense electronics, propulsion systems, sensors and precision engineering. With the increase in private rocket and satellite programs, the possibility of these companies getting new orders may increase. If India plays a bigger role in the global launch market then the business of these companies can also grow rapidly.
Target of $100 billion space economy by 2040
At present, India’s share in the global space economy is considered to be around 2 percent. However, the government aims to increase it manifold. At present India’s space sector is worth about $8.4 billion, but it is estimated that by 2030 it may increase to $40 to 45 billion. The government’s long-term goal is to turn it into a $100 billion economy by 2040. If this goal is achieved, India can emerge not only as a low-cost launch center but also as a global center for satellite manufacturing, space technology, data services and space-based solutions.
What will happen next?
The successful flight of Vikram-1 gives the message that India’s space sector has now entered a new phase. In the times to come, ISRO will focus on cutting-edge scientific missions, deep space research and new technologies, while private companies will play a bigger role in commercial launches, satellite manufacturing and serving global customers. The big space economies of the world have worked on this model and now India is also moving in the same direction. More than 400 startups, government funds worth thousands of crores of rupees, new policies and private investments indicate that in the coming years, India will not only be a country that sends missions to space, but can also make a strong mark among the world’s largest space businessmen.
Also read- Country’s first private rocket launch, Vikram-1 took off from Sriharikota.
