By R Anil Kumar
Under Prime Minister Narendra Modi’s leadership, India has shifted from a regulated space program to a vibrant, inclusive ecosystem that fosters startups, attracts investment, and positions the nation as a global space powerhouse. The Indian government has prioritised space as a cornerstone of national development.
India’s space sector, long spearheaded by the Indian Space Research Organisation (ISRO), is undergoing a transformative evolution, driven by bold reforms, private sector innovation, and strategic global partnerships. Under Prime Minister Narendra Modi’s leadership, India has shifted from a regulated space program to a vibrant, inclusive ecosystem that fosters startups, attracts investment, and positions the nation as a global space powerhouse.
Government Reforms and Strategic Investments
The Indian government has prioritised space as a cornerstone of national development. The Union Budget 2025-26 allocated Rs. 13,416 crore to the Department of Space, reinforcing India’s commitment to advancing its space capabilities. Additionally, a Rs. 1,000 crore venture capital fund, introduced in the 2024-25 budget, is catalysing the growth of space startups, with a vision to expand India’s space economy five-fold by 2033.
The establishment of the Indian National Space Promotion and Authorization Centre (IN-SPACe) has streamlined private sector participation, enabling faster innovation, cost efficiency, and global competitiveness. These reforms have opened doors for domestic and international players, positioning India as a key contender in the global space economy.
ISRO’s Evolving Role: From Operator to Enabler
ISRO has been the backbone of India’s space achievements, with 58 launch vehicle missions between 2014 and 2025, a 38% increase from the 42 missions conducted before 2014.
It’s Polar Satellite Launch Vehicle (PSLV), often called ISRO’s “trusted workhorse,” has completed 62 missions, with a record-breaking launch of 104 satellites in a single mission in 2017—a 940% leap from the previous record of 10 satellites. ISRO’s capabilities have also grown significantly, with the maximum payload capacity of Geosynchronous Transfer Orbit (GTO) rising from 2,200 kg to 4,200 kg (a 91% increase) and the heaviest payload launched from Indian soil reaching 5,805 kg, a 152% improvement.
While ISRO continues to lead in landmark missions like Chandrayaan-3 (2023), which made India the first nation to land in the Moon’s southern polar region, and Aditya-L1 (2023), the country’s first solar observatory, its role is shifting toward enabling private sector growth.
These efforts have generated significant foreign exchange revenue, with 393 foreign satellites launched commercially between 2014 and 2024, earning almost Rs. 3,400 crore ($143 million and €272 million).
The Startup Surge: Private Players Redefining the Sector
India’s space reforms have sparked a startup revolution, with 325 space startups emerging by 2025—a staggering 32,400% increase from just one in 2014. Companies like Skyroot Aerospace, which launched India’s first private rocket, Vikram-S, in 2022, and Agnikul Cosmos, developing a semi-cryogenic launch vehicle, are at the forefront of this transformation.
Pixxel’s constellation of Earth-observation satellites exemplifies the sector’s shift toward innovative, scalable solutions.
Under the Modi government’s liberalised policies, including 100% FDI in satellite operations (with approvals), tax incentives, and the Production-Linked Incentive (PLI) scheme, this growth has been fuelled. The PLI scheme has bolstered domestic manufacturing of satellite components, propulsion systems, and payloads, reducing reliance on imports and positioning India as a technology exporter. These initiatives have attracted global investment, strengthened supply chains, and enhanced India’s competitiveness in the commercial space market.
Global Influence and Strategic Milestones
India’s space program is not just about technological prowess—it’s about global influence. Between 2014 and 2024, ISRO launched 398 foreign satellites, a 1,037% increase from the 35 launched before 2014, cementing India’s reputation as a reliable and cost-effective launch provider. Collaborations like the launch of OneWeb’s broadband satellites via the LVM-3 and partnerships with industry giants like Larsen & Toubro, which is manufacturing PSLVs with Hindustan Aeronautics Limited, highlight India’s growing commercial clout. The first privately built PSLV, costing approximately Rs. 2 billion per rocket, is set for launch in 2025, marking a milestone in public-private collaboration.
India’s recent achievements underscore its technological leadership. The Spandex mission in January 2025 made India the fourth nation capable of space docking, a critical capability for the Gaganyaan program, the Bharatiya Antariksh Station by 2035, and a crewed lunar mission by 2040. Missions like the Mars Orbiter Mission (2014), which made India the first country to succeed in its maiden attempt, AstroSat (2015), with over 400 research articles and 30 theses from its data, and XPoSat (2024) have solidified India’s scientific credentials.
Space-Based Defence and Diplomacy
India’s space ambitions extend to strategic defence and diplomacy. The 2019 Mission Shakti ASAT test demonstrated India’s ability to neutralise enemy satellites, while ongoing advancements in AI-powered surveillance and secure satellite communications address regional security challenges posed by adversaries like China.
Space diplomacy, through initiatives like launching satellites for Nepal, Bhutan, and Brazil, under the ‘Neighbourhood First’ policy, has strengthened India’s influence in the Global South. Participation in the Artemis Accords and collaborations like the NISAR satellite with NASA underscore India’s role in shaping global space governance.
The Road Ahead: A Space-Tech Powerhouse
The Modi government’s reforms, coupled with the dynamism of 325 startups and ISRO’s pioneering spirit, have created a self-sustaining ecosystem that drives innovation, attracts investment, and fosters global partnerships. As India advances in crewed missions, deep-space exploration, and commercial applications, its vision for the Amrit Kaal is clear: to emerge as a global space-tech powerhouse, leading with innovation, self-reliance, and strategic ambition.
