India’s private space sector is witnessing significant growth following the liberalisation of the space industry, with around 440 space technology startups now registered on the DPIIT Start-up India Portal. The government has introduced a series of policy, financial, technological and infrastructure measures to encourage greater private participation in satellite manufacturing, launch services, downstream applications and space-based technologies.
Minister of State (Independent Charge) for Science & Technology, Earth Sciences and several other portfolios, Dr Jitendra Singh, provided the information in a written reply in the Lok Sabha.
According to the government, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) has granted 113 authorisations to 52 Non-Government Entities (NGEs) to undertake various space activities. Of these, 18 are startups.
Technology transfer has emerged as an important pillar of the government's strategy to strengthen India's private space industry. NewSpace India Limited (NSIL), in coordination with IN-SPACe, has signed 118 Technology Transfer Agreements covering 83 technologies developed by ISRO and the Department of Space.
These technologies include Small Satellite Launch Vehicle (SSLV) technology, Indian Mini Satellite-1 (IMS-1) Bus, ISRO Laser Gyro (ILG), Tri-band S, X and Ka Antenna Feed, Ceramic Servo Accelerometer (CSA), X-band Mini-SAR and Low Temperature Co-Fired Ceramic (LTCC) Multi Chip Module technology.
NSIL has transferred several of these technologies to Indian startups and is providing handholding support to help them successfully assimilate the technologies and use them for commercial purposes. It is also facilitating access for Indian industries and government public sector undertakings to ISRO's technical facilities for validation of technologies and products being developed by them.
IN-SPACe is also taking forward the planned transfer of Polar Satellite Launch Vehicle (PSLV) and Launch Vehicle Mark-3 (LVM3) technologies to enable greater private sector participation in launch vehicle manufacturing and operations.
Government Push Through Policy and Funding
The government has undertaken several measures since the liberalisation of the space sector to create a more supportive environment for private companies. The Indian Space Policy 2023 defined the roles and responsibilities of various stakeholders in the Indian space ecosystem, while a decadal vision and strategy has been formulated for the growth of the space sector and the wider space economy.
A liberalised Foreign Direct Investment policy has also been introduced for the space sector. The government has implemented discounted pricing for Non-Government Entities seeking access to ISRO facilities and has established a ₹1,000 crore Venture Capital Fund to support space startups.
Another major initiative is the ₹500 crore Technology Adoption Fund, which is aimed at accelerating the development, demonstration and commercialisation of indigenous space technologies.
The government is also facilitating access to ISRO infrastructure, technical expertise and mentorship for private companies. Skill development programmes have been introduced to meet the evolving workforce requirements of the space sector, while a Technical Centre has been established to provide affordable testing, validation and simulation facilities.
Startups are also being given opportunities to validate their technologies through the PSLV Orbital Experimental Module (POEM) platform. The Satellite Bus as a Service initiative has been launched to develop indigenous satellite platform capabilities and speed up satellite development.
The government is also encouraging state governments to establish manufacturing clusters and common testing facilities to strengthen India's space manufacturing ecosystem.
Space Startup Investment Reaches $618.5 Million
The policy measures have been accompanied by increasing private investment in the sector. According to the government, cumulative investments in Indian space startups reached approximately USD 618.5 million as of March 31, 2026.
The investment pattern is also gradually evolving, with funding shifting from predominantly early-stage seed capital towards larger growth-stage investment rounds. The government expects such investments to support the scaling up of Indian space companies and strengthen their ability to compete in international markets.
Global Market Access and International Cooperation
IN-SPACe is also working to expand international opportunities for Indian space companies and startups. It is engaging with foreign governments, space agencies, industries and other stakeholders to facilitate international cooperation in the commercial space sector.
These efforts include facilitating the participation of Indian space companies in international exhibitions, business forums, delegation visits, B2B meetings and industry roundtables. IN-SPACe is also representing the Indian commercial space sector in government-to-government dialogues and promoting partnerships with emerging space economies.
The objective is to encourage exports, technology collaborations and greater integration of Indian companies into global space supply chains. According to the government, these initiatives have created collaboration opportunities for India's private space sector with stakeholders across more than 30 countries.
No Additional Space Facilities Planned in Andhra Pradesh
Despite the wider expansion of India's private space ecosystem, the government has clarified that there is currently no proposal or plan to establish or support additional space incubation centres, testing facilities or innovation hubs in Andhra Pradesh.
The government said its overall strategy following the liberalisation of the space sector encompasses policy and regulatory reforms, infrastructure access, technology transfer, financial assistance, skill development and international market access.
With around 440 startups already part of India's space technology ecosystem, growing private investment and increasing access to ISRO-developed technologies and facilities, the government is seeking to build a stronger and more commercially oriented space industry in the country.
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