- India’s private space revolution is about more than just new companies launching satellites; it represents a fundamental reimagination of how space capabilities are developed, deployed, and democratised.
- The Indian space economy is estimated to reach $8 billion in 2024 and up to $40 billion in 2035, according to industry experts.
- Private companies are not vendors or contractors anymore; they are partners, innovators, and increasingly leaders.
- If the private sector succeeds, it will be a validation and potentially create a flurry of investments and customer orders in India’s private space sector.
The powerful sound of rocket engines at Sriharikota has long symbolised a vision in India’s space endeavours. But today, we are seeing a new music being created—one that is not only being manufactured by the esteemed Indian Space Research Organisation (ISRO), but by a chorus of eager startups featuring names like Skyroot, Agnikul, and Dhruva Space. They are not just players involved in India’s space story; they are changing the narrative altogether.
For decades, space was exclusively the business of governments. Launching vehicles, satellites, and missions required great financial investment, political support, and decades of institutional knowledge. However, in June 2020, when the Indian government announced major reforms to accommodate private participation in space, it sparked a revolution; India was no longer a low-cost service provider, but a global centre for commercial space activities.
The Catalyst: Policy Reforms That Changed Everything
It is a simple recognition that lies at the heart of the story of India’s Space 2.0: ISRO, notwithstanding its remarkable achievements, from the Mars Orbiter Mission to Chandrayaan-3, was not up to the task of responding to the surging demand of the modern-day space economy as a government agency. The answer did not lie with expanding a government agency; it lay with the private sector.
By any measure, the reforms in 2020 were radical: a single-window facilitator and regulator in the Indian National Space Promotion and Authorisation Centre, providing companies for the first time access to ISRO’s very own infrastructure, testing facilities, and decades of technical expertise. The reforms were then reinforced with regulatory certainty in the Indian Space Policy 2023 and the clear demarcations of roles: ISRO would focus on research and development, commercialisation would be the role of the NSIL, whilst IN-SPACe would guide private players.
The effects were staggering. India went from less than a handful of space companies before 2020 to over 225 space tech startups, ranking fifth in the world for the number of space companies. The Indian space economy is estimated to reach $8 billion in 2024 and up to $40 billion in 2035, according to industry experts. The policy also provided some attractive and reliable provisions, with foreign direct investment of 100% under the automatic route for satellite components, and up to 74% for satellite manufacturing and 49% for launch vehicles. In October 2024, the government launched a company dedicated to ₹1,000 crore as a venture capital fund exclusively for space startups, demonstrating a serious commitment to developing this ecosystem.
The influence has been significant. Before 2020, India had only a handful of space firms; today, it has over 225 space-tech startups, which ranks it fifth in the world for the largest number of space firms. The Indian space economy will grow from approximately $8 billion in 2024 to $40 billion by 2035, based on industry estimates.
Skyroot Aerospace: Building Cabs to Space
When Pawan Kumar Chandana and Naga Bharath Daka made their decision to leave their comfortable positions at the Indian Space Research Organisation (ISRO) in early 2018 and set their intent on building Skyroot Aerospace based in Hyderabad, many people questioned the decision-making process. A private company building rockets for India’s cosmic commons? That was an ambitious statement of intent; was it even reasonable? Four years later, they would disrupt the space industry.
On November 18, 2022, Skyroot’s Vikram-S made headlines as the first privately developed rocket from India to reach outer space during the Prarambh mission. The suborbital test flight was more than an accomplishment of classic engineering; it registered as a landmark moment marking the emergence of the private space industry in India. “We’re going to build cabs to get into space,” commenting on their mission to CNN, a clear vision of someday making it easy to access access to space, horizontal to taking a flight.
Small, specialised launch vehicles are Skyroot’s philosophy. While SpaceX launches hundreds of satellites on a single large Falcon 9, Skyroot aims at a niche but lucrative market of dedicated small satellite launches with their Vikram series of rockets. Their Vikram 1 rocket, designed to carry 500 kilograms to low Earth orbit, has something larger rockets can’t offer: precision placement in highly specific orbits.
The progress of the company has been remarkable. In August 2025, the firm conducted the successful test firing of the Kalam-1200, India’s largest privately developed rocket stage, in another important milestone on Skyroot’s journey to commercial orbital launches. First flight for the Vikram-1-1 orbital mission is scheduled later in 2025, which may establish Skyroot as the largest private space transportation provider in India.
The startup has accordingly garnered considerable investor confidence and has secured funding of up to an estimated $95 million, of which a pre-Series C round of $27.5 million was led by Temasek in 2023-the largest funding round for an Indian space-tech firm at the time. In June 2025, it joined forces with Axiom Space to extend low-Earth orbit access around the world jointly, marking a much wider international recognition of their capabilities.
Skyroot enjoys the competitive advantage of India’s legendary cost efficiency. Where Western players might charge premium rates for a dedicated small satellite launch, Skyroot leverages India’s track record of frugal innovation. They aren’t trying to out-payload SpaceX; what they’re trying to do is target customers that need bespoke orbital insertion at a competitive price sweet spot in the global market.
Agnikul Cosmos: The 3D Printing Pioneers
If Skyroot represents systematic engineering excellence, Agnikul Cosmos embodies radical innovation. Founded in 2017 by Srinath Ravichandran and Moin SPM at IIT Madras, Agnikul has taken a fundamentally different approach to rocket building-a method that could revolutionise small satellite launch economics.
“We’re building rockets like startups build software: modular, fast, and adaptive,” says cofounder Srinath Ravichandran. This philosophy realises perhaps its most dramatic form in Agnibaan, a rocket whose modular architecture lets customers specify how many engines they want, whether to include a third stage, and even where to launch from. It’s basically the aerospace version of Lego.
Agnikul’s real innovation, however, is in the use of 3D printing technology. On May 30, 2024, they successfully launched Agnibaan SOrTeD, Sub-Orbital Technological Demonstrator, powered by Agnilet – the world’s first single-piece 3D-printed semi-cryogenic rocket engine. It is not merely a feat of pulling off a difficult technical stunt but possibly the beginning of a paradigm shift in how rockets are made.
Traditional rocket engines contain hundreds of parts that have to be individually manufactured, inspected, and assembled; this is extremely time-consuming, expensive, and prone to defects. Agnikul’s 3D-printed engine reduces this complexity dramatically, potentially cutting manufacturing time from months to weeks and costs by significant margins. It has patents secured for the same, which act as a competitive moat in the global small launch market.
For customisation at Agnikul, it goes beyond the rocket itself: the firm has developed a truck-mounted mobile launch platform for launching from multiple sites, with flexibility unmatched by fixed launch facilities. This agility is particularly attractive to customers with specific orbital requirements or time-sensitive payloads.
The startup operates from India’s first private launch facility at Sriharikota, set up through IN-SPACe’s facilitation. It has raised close to $40 million in funding, including a key Series B round of $26.7 million, with participation from Anand Mahindra, Naval Ravikant, and Zerodha’s Nithin Kamath, among others.
Agnikul completed its suborbital test in 2024 and is planning its first orbital launch, which will happen by mid-2026. That gives them a unique position in the bespoke satellite launch market because they can flexibly manufacture and configure missions, commanding premium prices for customisation.
Dhruva Space: The Satellite Specialists
While Skyroot and Agnikul capture headlines with their rockets, Dhruva Space is quietly building a different kind of empire. Founded in 2012 by Sanjay Nekkanti in Hyderabad, Dhruva describes itself as a “full-stack space engineering solutions provider”-and that comprehensive approach is their superpower.
Dhruva’s business model fills a very important gap in the space value chain. While launch vehicles can take satellites to orbit, who makes these satellites? Who operates the ground stations with which they would be in contact? Who does the sensors and integration? Dhruva does all that and more: end-to-end solutions through the whole satellite life cycle.
The company designs and manufactures small satellites for defence, communication, and academic purposes. In 2024, Dhruva successfully deployed multiple nanosatellites aboard ISRO’s PSLV, validating their commercial model and showing that Indian private companies could build reliable spacecraft.
But Dhruva’s ambitions aren’t restricted to the manufacture of satellites alone. They operate ground station networks, which support satellite tracking, telemetry, and command services. They develop special sensors and integration platforms. They even provide “satellite-as-a-service” models where the customers can get access to the space-based capability without owning satellites.
This comprehensive approach earned Dhruva partnerships with major organisations, including Cisco, KPMG, ISRO, and the European Space Agency. The ESA granted Dhruva $59,000 for specific projects, appreciating the quality of the engineering and the cost-effectiveness of their solutions.
Dhruva’s long-term vision, its leadership says, is to become the “Tata of satellites”: a trusted, vertically integrated purveyor of space hardware and services. It’s an apt comparison: just as Tata Group spans steel, automobiles, software, and hospitality, so does Dhruva have ambitions to soup-to-nuts space solutions and be the go-to partner for anyone needing satellite capabilities.
The startup raised $673,000 in angel funding in 2019, led by Ravikanth Reddy of Hotcrete through Mumbai Angels Network. Though their funding rounds haven’t matched the eye-popping numbers of Skyroot or Agnikul, their business model—driven by revenue generation rather than pure technology development—might prove more sustainable long-term.
The Broader Ecosystem: Beyond the Big Three
While Skyroot, Agnikul, and Dhruva Space may be the most publicised faces of India’s private space revolution, they are part of a much larger ecosystem. Pixxel is working on Earth observation satellites capable of hyperspectral imaging and raised $36 million from Alphabet Inc., further demonstrating the interest of investors outside of India. Bellatrix Aerospace, also based in Bengaluru, is working on advanced propulsion systems. GalaxEye is developing multi-sensor satellite technology. Astrome is developing satellite communication systems with lasers. Each of these companies is focused on niche applications that contribute to a multi-faceted ecosystem rather than a winner-takes-all result. This is a very good thing happening, as it means that India is developing capabilities along the entire space value chain: propulsion, satellites, communications, and analytics.
States compete to attract this activity. Karnataka’s Draft Space Technology Policy 2024-29 lays out an ambitious plan to capture 50% of the country’s national space market, inviting investments of ₹25,590 crores and supporting 500 startups. Tamil Nadu is setting up aerospace manufacturing clusters with incentives such as expediting approvals and subsidies on capital.
The Challenges Ahead
But there is reason for caution, too. Funding in India’s space-tech startups actually contracted 35% year-on-year to about $76.79 million in 2024, even as the number of deals rose from 11 to 14. What this indicates is that investors are getting choosier, investing in those firms that have a clear route to commercialisation rather than pure technology development.
The regulatory frameworks are still in a state of evolution. The Indian Space Policy 2023 gives overall direction, but detailed guidelines with respect to licensing, insurance, liability, and spectrum allocation remain works in progress. Private companies sometimes face uncertainty over approvals and compliance requirements.
Infrastructure remains a bottleneck. Private facilities for launch and testing are few and far between in the country. IN-SPACe opens up ISRO facilities, but the demand is growing much faster than the capacity. Building testing ranges and launch sites requires massive capital investments and often comes with complex regulatory approvals.
Competition is also intense globally, with companies like Rocket Lab, Firefly Aerospace, and Relativity Space in the West having head starts in technology, funding, and market penetration. Chinese private space firms are also growing fast with heavy government support. India’s startups must compete not just on cost but on reliability, technology, and service.
The talent pipeline, though improving, needs to expand. Space engineering is a very specialised domain that needs skills in propulsion, materials science, orbital mechanics, and systems integration. While the IITs and other premier institutions are producing excellent engineers, space industries need thousands more trained professionals.
The Road to 2035
Nonetheless, the course of action is clear. Dr K. Sivan, former Chairman of ISRO, states that, “India could make it to be the second-largest provider of small-satellite launch services to customers within ten years.” This is not a stretch, but a reasonable projection given cost advantages, improved technology, and policies supporting this development in India.
The real test, however, will be in 2025-26, when Skyroot and Agnikul will try to execute their first commercial orbital launches. If they succeed, it will be a validation and potentially create a flurry of investments and customer orders in India’s private space sector. If they fail, it will be a loss, but likely not a death blow–developing rockets is a risky business. Even SpaceX had failures before selecting a reliable rocket design for their missions.
Beyond launches, the downstream applications of space technology are enormous. Satellite-based services in agriculture, disaster management, telecommunications, and navigation could be game-changers in transforming the economy of India. The Ministry of Road Transport and Highways is already piloting FASTag GPS, a satellite-based toll collection system that could revolutionise the management of road infrastructure.
Another huge potential lies in the defence sector. Its plans to approve the SBS-III, a space-based surveillance project, call for 52 satellites, of which 31 are to be made by the private sector—a good pointer toward recognition of private capabilities by the military. This provides not just revenue but also purpose—national security applications that justify government support during difficult periods.
Conclusion: A New Dawn for Indian Space
India’s private space revolution is about more than just new companies launching satellites; it represents a fundamental reimagination of how space capabilities are developed, deployed, and democratised. Where ISRO once stood alone, a vibrant ecosystem now thrives: startups competing and collaborating, each pushing the boundaries of what’s possible.
Precise small launchers by Skyroot, 3D-printed engines by Agnikul, integrated satellite solutions by Dhruva-none of these are mere products; they are testaments to Indian innovation, entrepreneurship, and the power of policy reforms that unleash private initiative while maintaining public purpose.
The journey from Space 1.0 to Space 2.0 is not over. There are still challenges aplenty, failures will happen, and not all startups will make it. But there is no going back. India’s space sector has crossed its Rubicon. Private companies are not vendors or contractors anymore; they are partners, innovators, and increasingly leaders.
They carry not just satellites but the hopes of a nation keen to mark its place among the stars as these startups prepare for their orbital debut. The question is no longer whether India’s private space sector will succeed-but how fast and how far it will go. If the first five years since the 2020 reforms are anything to go by, the answer is: very fast, and very far indeed.
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Daljeet Singh holds a BTech in Computer Science and is currently pursuing an MA in Political Science. His interests range across geopolitics, international relations, and technology. An avid reader and writer, he is passionate about exploring the intersections of these fields. Views expressed are the author’s own.
Dr Lakshmi Karlekar & Tanishaa Pandey 
Hridbina Chatterjee 
Aayush Pal