India’s space economy is valued at an estimated USD 8.4 billion, with 399 start-ups currently active across launch vehicles, satellites, propulsion systems and space-grade electronics, according to statements made in Parliament on 29 January 2026. The expansion follows policy reforms introduced after 2019 that opened the sector to private participation and established new institutional mechanisms to support industry involvement.
In an official statement delivered while replying to a starred question in the Rajya Sabha, Union Minister of State (Independent Charge) for Science and Technology and Space Jitendra Singh said the growth in start-ups and economic activity was enabled by reforms aimed at creating an ecosystem for private investment and entrepreneurship. He said the establishment of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) was a key institutional change, providing a single-window interface between private companies and government agencies, including the Indian Space Research Organisation.
The Minister said that while scientific capability had existed within ISRO, the absence of an enabling ecosystem had earlier limited wider industrial participation. Following the reforms, the number of space start-ups increased from single-digit levels to 399. He told the House that the space sector, once marginal in economic terms, is now valued at about USD 8.4 billion and is expected to grow four to five times over the next eight to ten years, potentially reaching USD 40–45 billion.
Private entities are now active across multiple segments of the space value chain, including satellite platforms, launch systems, propulsion technologies and related applications. Singh said Hindustan Aeronautics Limited has signed a technology transfer agreement with ISRO for the Small Satellite Launch Vehicle, and cited participation by several Indian companies to illustrate the breadth of industry involvement following the opening of the sector.
The Minister also provided details on revenues from launching foreign satellites. Of the 434 foreign satellites launched by ISRO to date, 399 were launched after 2014. These launches generated revenues of about EUR 323 million and USD 233 million, reflecting India’s growing role in the global space launch market.
Additional information provided in a separate parliamentary response on the same day showed that approximately 1,050 private companies have listed their capabilities on the IN-SPACe Digital Platform for various space activities. The Indian Space Policy 2023 permits private entities to undertake end-to-end space activities, including launches, satellite realisation and operations, data acquisition and dissemination, and ground station services. Funding of INR 23.6 million has been disbursed so far under the IN-SPACe Seed Fund and Pre-Incubation Entrepreneurship Programme.
According to IN-SPACe’s Decadal Vision Report, India’s space economy is targeted to grow from USD 8.4 billion in 2022 to USD 44 billion by 2033, including USD 11 billion in exports. Singh said space is expected to become an increasingly important contributor to future economic growth as private investment expands and institutional mechanisms support scaling of services, manufacturing and exports.
