The private space sector in India has moved from talking point to operating reality. A reform sequence that began in 2020 opened launch vehicles, satellites, ground stations, and applications to private companies, set up an autonomous regulator and promoter under the Department of Space, and let ISRO transfer its technology and facilities to startups. Within four years two Indian companies, Skyroot Aerospace and Agnikul Cosmos, had reached space with their own launch vehicles, and a third generation of startups had emerged across propulsion, satellites, and downstream applications.
The shift matters because the global space economy is growing past six hundred billion dollars and is on track to cross a trillion within a decade. India’s share, dominated until recently by ISRO contracts, was tiny relative to its technical capability. The reforms were designed to unlock that capability and capture a meaningful share of a fast-growing market.
IN-SPACe: The Autonomous Regulator and Promoter
The Indian National Space Promotion and Authorisation Centre, or IN-SPACe, was set up in 2020 as an autonomous agency under the Department of Space. It functions as the single window for private players seeking to launch satellites, build launch vehicles, set up ground stations, or use ISRO infrastructure. IN-SPACe handles authorisations, allocates spectrum coordination in consultation with the relevant ministries, and promotes participation by industry, academia, and startups.
The autonomy is significant. IN-SPACe is independent of ISRO operationally, so private firms do not need to negotiate with the same agency that runs its own competing missions. ISRO continues to develop strategic missions and provides infrastructure access; the regulatory and promotional functions sit with IN-SPACe.
Indian Space Policy 2023
The Indian Space Policy 2023 lays out the roles of the three core organisations. ISRO focuses on research, development of advanced technologies, human spaceflight, and exploration missions. NewSpace India Limited, the commercial arm, productises ISRO technology and runs commercial launches. IN-SPACe authorises and supervises private sector activity. Private players can now own and operate end-to-end space systems, including launch vehicles and space-based applications.
Skyroot Aerospace and Vikram
Skyroot Aerospace, founded in 2018, became the first Indian private company to launch a rocket to space when Vikram-S lifted off from Sriharikota in November 2022 on a suborbital test flight. The single-stage solid-fuel rocket validated key technologies for the company’s planned orbital launch vehicle, Vikram-1. Skyroot’s portfolio aims at small-satellite operators who want flexible launch windows and dedicated rides rather than rideshare slots on larger rockets.
Agnikul Cosmos and the 3D-Printed Engine
Agnikul Cosmos, an IIT Madras-incubated startup, conducted the first flight of its Agnibaan SOrTeD launch vehicle in May 2024 from a private launchpad at Sriharikota. The flight was a suborbital test of a single-stage rocket powered by the Agnilet engine, which is built as a single piece using metal 3D printing. The 3D-printed engine simplifies manufacturing by eliminating the assembly of dozens of components into one part. Agnikul also operates India’s first private launchpad and mission control facility.
The Agnibaan family is designed to be modular, with configurations carrying payloads of up to three hundred kilograms to low Earth orbit. The 3D-printed engine is the company’s signature technical bet, both for cost and for rapid iteration between flights.
A Wider Ecosystem
The two launch companies are the visible peak of a larger pyramid. Pixxel is building a hyperspectral satellite constellation for Earth observation. Bellatrix Aerospace develops electric and chemical in-space propulsion. Dhruva Space builds satellite buses and ground stations. GalaxEye and SatSure work in radar imaging and analytics. Digantara focuses on space situational awareness. The Indian Space Association and the Department of Space estimate over two hundred space startups are now active in India.
ISRO continues to anchor the ecosystem with infrastructure, anchor customer contracts, and Technology Transfer agreements. Several startups use ISRO-developed propulsion, software, or testing facilities under IN-SPACe-mediated arrangements.
For deeper context on India’s broader space activity, see our pages on the Chandrayaan mission, Chandrayaan-4 lunar sample return, and the SpaDeX docking experiment.
Foreign Investment and Spaceports
The 2024 amendments to the FDI policy raised foreign direct investment limits in space activity, allowing up to one hundred percent FDI under the automatic route in satellite components and applications, and up to seventy-four percent under the automatic route in satellite manufacturing and operations, with higher percentages permitted with government approval. The change opens Indian startups to international capital and creates room for joint ventures with foreign primes.
A second private launchpad and additional spaceport infrastructure are on the agenda, including the Kulasekarapattinam site in Tamil Nadu, which is being developed primarily for small satellite launches.
Risks and What to Watch
Launch failures are expected during early-stage development. Indian launch startups have so far flown only suborbital test missions; orbital flights are the next milestone, and the rate of successful orbital insertions over the next two to three years will define market credibility. Capital intensity, talent retention, export controls, and the slow pace of long-term anchor contracts are the most cited business risks. On the policy side, the predictability of authorisations under IN-SPACe and the stability of foreign capital rules will determine how much momentum the sector sustains.
FAQs
What is IN-SPACe?
IN-SPACe is the Indian National Space Promotion and Authorisation Centre, an autonomous agency under the Department of Space that authorises and supervises private sector space activities and acts as a single window for industry.
Is IN-SPACe under ISRO?
No. IN-SPACe is autonomous and reports through the Department of Space, separately from ISRO. ISRO continues to run scientific and strategic missions; IN-SPACe handles private sector authorisation.
What did Skyroot achieve with Vikram-S?
Skyroot Aerospace launched Vikram-S in November 2022, making it the first Indian private rocket to reach space on a suborbital test flight from Sriharikota.
Why is Agnikul’s 3D-printed engine important?
Agnikul’s Agnilet engine is printed as a single metal piece, removing the need to assemble multiple components. This simplifies manufacturing and supports faster development cycles.
When did Agnikul launch its first flight?
Agnikul Cosmos conducted the first flight of Agnibaan SOrTeD in May 2024 from a private launchpad at Sriharikota. It was a suborbital test of a single-stage 3D-printed engine vehicle.
Can foreign companies invest in Indian space startups?
Yes. The 2024 FDI policy allows up to one hundred percent FDI in satellite components and applications under the automatic route, with higher thresholds under the automatic route for satellite operations and manufacturing.
What does the Indian Space Policy 2023 do?
It defines the roles of ISRO, NewSpace India Limited, and IN-SPACe, and formalises private sector participation across the full space value chain from launches to applications.
Is ISRO being privatised?
No. ISRO retains its mandate for strategic and scientific missions. Private companies are now allowed to operate independently in commercial space activity, and ISRO can transfer technology and facilities to them.
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