India's spacetech sector is experiencing a surge in funding as numerous early-stage startups approach crucial launch milestones. This influx of capital highlights the increasing confidence in the potential of Indian spacetech companies to disrupt the global space market.
The Economic Survey 2025-26 underscores this transition, noting a shift from a government-led program to a commercially driven industry. This transformation is fueled by launch services, satellite data, and the emergence of private startups. The Indian space market is projected to reach an estimated $44 billion by 2035, a significant leap from its current valuation of $8.4 billion.
Several factors contribute to this optimistic outlook. India has established itself as a reliable and cost-effective launch provider, successfully launching 393 foreign satellites for 34 countries between 2015 and 2024, generating approximately $143 million and €272 million in revenue. This reputation is particularly appealing to the rising global demand for small satellite launches.
Furthermore, supportive government policies are playing a crucial role. The Indian Space Policy 2023, the operationalization of IN-SPACe (Indian National Space Promotion and Authorization Centre), and liberalized foreign direct investment norms have significantly lowered entry barriers for private companies. These reforms allow non-governmental entities to participate in manufacturing launch vehicles, operating satellites, and providing data analytics. To further support the burgeoning industry, the government has approved a Rs 1,000 crore venture capital fund and a Rs 500 crore Technology Adoption Fund to accelerate startup growth and technology-led development. Foreign Direct Investment norms now permit up to 100% investment through the automatic route in specific categories.
Recent funding rounds exemplify the growing investor interest. Bengaluru-based spacetech startup, The Guild, formerly known as EtherealX, secured $20.5 million in a Series A funding round led by TDK Ventures and BIG Capital, valuing the company at $80.5 million. The Guild is developing a fully reusable medium-lift rocket and will use the funds to test its engines and develop infrastructure in Space City, Andhra Pradesh. Orbitt Space, an Ahmedabad-based startup, raised $1 million in pre-seed funding to develop an air-breathing electric propulsion system for Ultra-Low Earth Orbit (ULEO) satellites.
The Economic Survey also highlights the expansion of downstream services, with India's satellite data services market valued at $495 million in 2024. These services cater to various applications, including defense, climate monitoring, logistics, and urban planning. Moreover, opportunities in Earth-system data, integrating atmospheric, oceanic, and geospatial information, are emerging as the next frontier for climate services and disaster management.
Tamil Nadu has been recognized as a "Best Performer" in the Startup India Rankings and offers a ₹10 crore Space Tech Fund to boost innovation in the space technology sector. Chennai is also ranked 18th in Asia in the Global Startup Ecosystem Report 2023.
As Indian spacetech startups continue to innovate and approach critical launch milestones, the sector is poised for significant growth, attracting further investment and solidifying India's position in the global space economy.
