India is charting a new course in its space exploration ambitions by turning to the private sector to build rockets and satellites, a move that mirrors the success of NASA and SpaceX. Prime Minister Narendra Modi’s government is shifting from relying solely on the Indian Space Research Organisation (ISRO) to utilizing private start-ups to manufacture launch vehicles. Pawan Goenka, the head of IN-SPACe, which is overseeing this initiative, told the Financial Times that private entities would soon be responsible for producing rockets used in high-profile missions like Chandrayaan, India’s lunar exploration programme. The shift represents a business opportunity valued at $4 billion to $5 billion.
The government’s push is driven by the need to bolster India’s space capabilities amid a growing strategic threat from China, particularly in the realm of defense-related space technology. India has ramped up its space efforts in recent years, with a historic achievement in 2023 when it became the fourth country to land a spacecraft on the Moon and the first to reach its South Pole with the Chandrayaan-3 mission. In line with these efforts, two private Indian companies, Skyroot Aerospace and Agnikul Cosmos, have already completed successful suborbital tests of launch vehicles, with the future focus on identifying private entities to build next-generation rockets.
India’s drive for a stronger space presence is seen as a necessity, given the rapid developments in the global small satellite sector. Raji Pillai, a senior fellow at the Australian Strategic Policy Institute, noted that Chinese and international private companies are increasing their footprint in this area. Without a robust infrastructure to compete, India risks falling behind. Space start-ups in southern India are flourishing, specializing in lightweight spacecraft materials, high-satellite image analysis, and applications in agriculture and mining.
The Indian government’s vision for the space sector is laid out in a 2023 document, targeting an industry worth $44 billion by 2033, with $11 billion coming from exports. This marks a significant leap from $8.4 billion in 2022. Companies like Skyroot, led by co-founder Pawan Kumar Chandana, are optimistic about India’s competitive edge, citing cost efficiency and strong technical capabilities. Pixxel, a start-up based in Bengaluru, plans to launch six satellites capable of covering the globe every 24 hours using hyperspectral imaging. Founder Awais Ahmed emphasized that no one had previously done this commercially, filling a crucial gap in the market.
India is seeing increasing participation from commercial operators. Since December 2023, five companies have registered proposals for non-geostationary satellite systems, a first for India’s commercial satellite sector, according to filings with the International Telecommunication Union. These developments signal India’s growing influence in the global satellite market.
Other innovative players are also emerging, such as GalaxEye, which plans to launch its Drishti satellite, offering consistent imaging from space for both day and night operations. The company is targeting both defense and commercial customers with its offering. IN-SPACe is facilitating these efforts and working with the private sector to develop a constellation of Earth observation satellites, with nine consortiums from 30 companies tendering for the contract. In line with these efforts, non-defense-related satellite launches, such as remote sensing and Earth observation, will be handled by the private sector in the future.
