Private Space Firms Accelerate India’s Push for a Bigger Share of the Global Space Economy

• India’s private space sector is expanding across communication, surveillance, satellites and launch services.

• The country aims to lift its global space economy share from 2–2.5% to 8–10%.

• India’s space economy is expected to grow from about USD 8.5 billion to USD 44 billion.

• Skyroot and several satellite firms have marked key private-sector milestones.

• A dedicated Space Act is still needed to clarify regulation and liability.

  
  

India’s space sector is entering a period of rapid expansion, with private companies playing an increasingly important role across launch services, satellite manufacturing, communication, surveillance and future navigation-related applications.

Lt. Gen. A.K. Bhatt (retd.), Director General of the Indian Space Association, said private participation has brought “huge activity” to the sector. According to him, companies are now stepping into several domains, including communication, intelligence, surveillance and reconnaissance. In the future, they may also provide Positioning, Navigation and Timing services to civilian, military and other users.

Bhatt said this growing participation reflects the wider transformation of India’s space ecosystem after the opening up of the sector to private players. Companies are no longer limited to supplying components or support services. They are now building rockets, launching satellites and competing for contracts in critical space-based services.

One of the most important milestones, he noted, was the successful rocket launch by Skyroot, a private Indian space company. The launch demonstrated that private firms in India are capable of developing and operating launch vehicles, a domain that was earlier dominated by government agencies.

Bhatt added that five to six companies have already launched their own satellites. This indicates that the country’s private space industry is gaining momentum not only in launch technology but also in satellite deployment and downstream applications.

The government has also started awarding contracts to private firms for satellite-based services. These include surveillance support for the armed forces. Another contract has been awarded for 12 Earth observation satellites, showing that private players are being brought into strategically important segments of the space economy.

At present, India accounts for about 2% to 2.5% of the global space economy. Bhatt estimated this share at around USD 8.5 billion. The country now aims to expand its presence sharply over the next eight to ten years, targeting an 8% to 10% global share.

If that growth is achieved, India’s space economy could reach around USD 44 billion. Bhatt said this future market will include revenue from launch vehicles and satellites, but the largest opportunity may come from space-based applications.

He identified applications as the most important part of the space economy. These include services in agriculture, disaster management, education, healthcare and other public and commercial sectors.

According to Bhatt, space technology can help improve crop monitoring, guide disaster response, support remote learning and enable medical services in underserved areas.

These solutions can be deployed not only within India but also offered internationally, creating an opportunity for the country to become a global provider of space-enabled services.

Satellite broadband is another major area of growth. Bhatt pointed to the rising importance of low-Earth orbit satellites, especially in rural and remote regions where fibre networks are difficult or expensive to install.

LEO satellite constellations are increasingly being used worldwide to deliver internet services. Bhatt noted that Starlink has a constellation of about 10,000 satellites, while Eutelsat OneWeb operates around 640 satellites. Amazon has launched around 396 satellites, and Jio has announced plans for nearly 1,600 LEO satellites for broadband services.

However, he said cost remains the biggest obstacle. Satellite broadband delivered through LEO constellations is still more expensive than terrestrial broadband. Even after more companies enter the market, affordability will remain central to adoption, particularly in rural areas.

Bhatt also spoke about the policy framework supporting private sector growth. He said the government has taken several steps, including introducing a liberalised foreign direct investment policy and issuing guidelines for the space sector.

However, he stressed that India still needs a dedicated Space Act. Such a law, he said, would help address regulatory questions, define the powers of the regulator and clarify issues such as liability.

Liability is especially important in space activity because launches, satellites and orbital operations carry technical and financial risks. A legal framework would help investors, operators and customers understand responsibilities in case of failures or damage.

Bhatt said the proposed legislation would specify the regulator’s role and powers while also dealing with matters related to accountability and liability. This, he suggested, would provide greater confidence to private companies and international partners.

On spectrum for space communication, Bhatt said the government has decided to allocate it through an administrative mechanism. Regarding charges, he noted that the Telecom Regulatory Authority of India had recommended 4% of adjusted gross revenue. The ministry, however, has considered 5%, along with selective reductions for rural and other identified areas.

India’s space ambitions are also being supported by international partnerships. Bhatt highlighted collaboration with NASA, Japan’s JAXA, the European Space Agency and the French space agency.

He said the NASA-ISRO Synthetic Aperture Radar satellite, known as NISAR, is already supplying data globally. India and Japan are also working together on future lunar exploration, adding another dimension to the country’s international space cooperation.

Meanwhile, ISRO continues to advance its own mission pipeline. According to ANI, the agency on Friday successfully launched the GSLV-F17 carrying EOS-05, India’s first imaging satellite from geosynchronous orbit. The satellite was placed into a sub-geosynchronous transfer orbit.

The developments point to a space sector that is becoming broader, more commercial and more globally connected. While ISRO remains central to India’s space programme, private companies are increasingly shaping the next phase of growth.

For India, the challenge will be to turn early momentum into a sustainable space economy. That will require lower costs, stronger regulation, deeper private investment, wider applications and continued international collaboration.

If these pieces come together, India’s goal of raising its global space economy share to 8% to 10% could move from aspiration to reality.