A new orbit for India: Startups, innovation propel space ambitions

India’s space sector has been abuzz with remarkable achievements recently. The Indian Space Research Organisation (Isro) celebrated a historic milestone with its 100th rocket launch from Sriharikota. Earlier, it successfully conducted space docking under the “SpaDeX” mission, positioning India as the fourth nation—after the United States, Russia, and China—to achieve this advanced capability. While we celebrate these successes, there is still significant ground to cover. Russia demonstrated space docking in 1967, the US in 1975, and China in 2011. Since then, these nations have showcased more advanced capabilities, including space stations, reusable spacecraft, space tourism, and low Earth orbit (LEO) constellations.  

  Space is the new frontier of human exploration, innovation and ambition, leading to a space-race amongst top nations. It has also become a competitive arena where nations vie for dominance — exploring and exploiting uncharted parts of Earth’s geography, claiming limited orbital real estate, and establishing control of other celestial bodies. Elon Musk’s vision of “dying on Mars” reflects the rapid progress the sector could make in the next few decades.

  While Isro continues to make strides, India’s space journey is seeing an exciting surge. The government’s 2020 decision to open the space sector has been a game-changer, with over 200 startups adding momentum to this progress. A key validation of this growth is the satellite launch vehicle POEM, which carries payloads into space for testing.

  POEM-1, in June 2022, carried six payloads, including two from startups. POEM-2, in April 2023, had seven payloads, three from startups. POEM-3, in January 2024, included 10 payloads, five from startups. Most recently, POEM-4, in December 2024, featured 24 payloads, with six from startups.

  The number of payloads isn’t the only thing growing — the complexity is increasing too. For example, Dhruva Space started with a 1U cubesat in POEM-1, progressed to 3U and 6U cubesats in POEM-2, and P30 nanosatellite tech in POEM-3. Bellatrix demonstrated a monopropellant thruster in POEM-3 and an advanced high-performance thruster in POEM-4. As the demand for space experimentation by startups rises, they are not only utilising Isro’s POEM but also turning to foreign launch vehicles.

Government policies have been instrumental in nurturing India’s space startup ecosystem. A major boost came with the launch of 75 space-related iDEX challenges during DefExpo 2022. The establishment of IN-SPACe, a regulatory body for private sector involvement, and Isro granting access to its launch facilities, ground stations, and testing infrastructure have further accelerated progress. The government’s commitment is evident in the creation of a Rs 1,000 crore venture capital fund and the allocation of 31 out of 52 SBS-3 program satellites to startups, empowering this burgeoning sector.

  While Isro pioneered cost-effective space innovations, startups are taking efficiency to the next level. By focusing on smaller, application-specific LEO satellites, they leverage modular designs, commercial supply chains, and off-the-shelf components to build satellites faster and more affordably. Additionally, by utilising ride-share launch options, these startups significantly reduce overall costs.

  Indian space startups are also driving world-class innovation. GalaxEye recently accomplished the world’s first-ever fusion of synthetic aperture radar with optical imagery in orbit, processing and compressing large volumes of analog data into digital format in under 10 minutes — a previously unachieved feat. Pixxel’s Firefly constellation is set to become one of the world’s most advanced hyperspectral satellite networks. InspeCity, a startup from IIT Bombay, is developing satellite life-extension services through in-orbit docking for repairs and refuelling. EON Labs is revolutionising space imaging by replacing multiple precisely aligned lenses with a single solid lens, addressing alignment issues caused by rocket launch shocks. Other innovators like Skyroot, Agnikul, Dhruva, Digantara, Bellatrix, XDLINX, Ananth, and TakeMe2Space are also making groundbreaking advancements.

  Globally, government funding—which dominated the space economy in the 2000s—has declined to less than 25 per cent, with the private sector now driving growth. India’s space startup ecosystem mirrors this trend. While early startups relied on US funding, the launch of MGF-Kavachh has sparked domestic venture capital interest. This means the sector’s rapid expansion isn’t solely reliant on public funds any longer. Over the past three years, Indian space startups have secured over Rs 2,500 crore in venture capital, with funding expected to rise as these startups scale. 

  India’s space sector is poised to be a major driver of economic growth, with projections suggesting it could reach $100 billion by 2030—a fifteen-fold increase in just a decade. Recognising this potential, several state governments have introduced space sector policies to attract startups and manufacturing while promoting the use of geospatial applications in agriculture, disaster relief, and urban planning.

  Karnataka has set an ambitious goal of capturing 50 per cent of the national market share and is offering a slew of incentives to achieve it. Other states are coming up with their own set of incentives. With this expansion comes a rising demand for skilled talent. Currently, there is only one Indian Institute of Space Technology (IIST) in Thiruvananthapuram, which offers specialised BTech in space technology. More IISTs need to be established, while leading IITs could also create space-related courses and degrees. 

  Doubtlessly, India’s space sector is at the cusp of a historic transformation, driven by a dynamic startup ecosystem and forward-looking policies. With sustained innovation, investment, and talent development, the nation is poised to become a global leader in the space economy, realising its Amritkaal vision.  

The author is distinguished visiting professor, IIT Kanpur, and former defence secretary