India’s Space Economy to Hit $45 Billion by 2037

India’s space economy, currently valued at approximately $9 billion, is projected to expand significantly to between $40-45 billion by 2037. This substantial growth is primarily driven by a burgeoning startup ecosystem and comprehensive policy reforms aimed at commercializing the nation’s space program.

Expanding Private Sector Involvement

Since 2014, the number of registered space startups in India has surged from just one to approximately 440 by August 2026. This entrepreneurial boom has attracted significant private capital into the sector.

Private investment saw a substantial increase, rising from $100.5 million in FY 2021-22 to $618.5 million by March 31, 2026. The government has actively facilitated this transition by authorizing 52 non-governmental organizations with 113 clearances for satellite operations, payloads, and launch services by mid-2026.

Key Policy Frameworks and Entities

The Indian Space Policy 2023 serves as a pivotal driver, designed to enhance the involvement of private players across the entire space value chain. This policy delineates the roles of two crucial entities: IN-SPACe and NewSpace India Limited (NSIL).

IN-SPACe, established in June 2020, functions as an autonomous agency promoting and authorizing private sector space activities through a single-window mechanism. By January 31, 2026, IN-SPACe had facilitated 71 transfers of ISRO technologies to industry and startups.

NSIL, the commercial arm of ISRO, focuses on facilitating launch, satellite, and space-based services, alongside transferring ISRO technologies to the industry. NSIL’s turnover dramatically increased from Rs 321.77 crore in FY 2021-22 to over Rs 3,000 crore in FY 2024-25, reflecting the growing commercialization of India’s space program.

Liberalized Foreign Direct Investment

India further liberalized its foreign direct investment (FDI) rules for the space sector in February 2024. These new regulations aim to attract more global capital and expertise.

• Up to 74% FDI is permitted automatically for satellite manufacturing and operations.
• Up to 49% FDI is allowed via the automatic route for launch vehicles and spaceports.
• 100% automatic route FDI is sanctioned for manufacturing satellite and ground segment components.

Strategic Funding Initiatives

The government has also introduced several funding mechanisms to support private space companies at various stages of development. These initiatives underscore India’s commitment to fostering a robust commercial space ecosystem.

Key programs include the IN-SPACe Seed Fund Scheme for early-stage startups and a Rs. 1,000 crore Venture Capital Fund for growth capital. Additional support comes from a Rs. 500 crore Technology Adoption Fund and a Rs. 75 crore allocation for the Satellite Bus as a Service (SBaaS) Scheme.

Key Figures Driving Growth

• Current space economy valuation: $9 billion
• Projected space economy by 2037: $40-45 billion
• Registered space startups (August 2026): Around 440
• Private investment (March 31, 2026): $618.5 million
• ISRO technology transfers by IN-SPACe (January 31, 2026): 71
• NSIL turnover (FY 2024-25): Over Rs 3,000 crore