For decades, India's space development program has been dominated by the government-run Indian Space Research Organisation (ISRO), with private companies serving at best as suppliers providing equipment. However, as the government vigorously promotes the commercialization of space and opens the sector to private entities, the role of private companies in India's space exploration is becoming increasingly prominent.

In [specific month and year], Skyroot Aerospace (company name) launched India's first privately developed rocket, marking a significant milestone for the Indian private sector's entry into the space field. In [specific month and year], the startup Agnikul Cosmos successfully launched the world's first rocket equipped with a 3D-printed engine, showcasing the local design and innovation capabilities of Indian private enterprises. In [specific month and year], India completed its first space docking experiment, codenamed [specific code], with both docking spacecraft independently assembled, integrated, and tested by private companies. This was the first time Indian private entities played a leading role in a national space mission.

The deep involvement of private companies in space exploration has not only created a lucrative space market for India but also shown the government the potential for the continuous expansion of the space economy.

2023年9月2日，搭载探测器的极地卫星运载火箭从印度安得拉邦斯里赫里戈达岛的萨蒂什·达万航天中心发射升空  新华社/美联

When the Indian government opens space to the private sector

In recent years, although India has continuously achieved world-renowned successes in the field of space exploration, it has been preoccupied with holding only a single-digit percentage share of the global space market. As the global aerospace industry continues to flourish, India hopes to secure a larger share of the trillion-dollar space economy and expand its proportion in the global space economy to a double-digit percentage.

Relying solely on a very limited budget and going it alone makes it evidently difficult to achieve this grand goal. For this reason, Somanath, the former chairman who just stepped down at the beginning of the year, has been continuously urging government space agency staff: they must change their mindset and share years of accumulated technology and infrastructure with private space enterprises. He emphasized that government investment alone is insufficient, and private entities must be established as independent participants capable of conducting end-to-end space activities. "Unless the private sector steps forward, India has no future in space."

Driven by this strong conviction, the Indian government initiated a strategic transformation aimed at opening up the space sector to private participation. In one year, India announced the liberalization of its space sector, which had long been monopolized by the government, allowing private entities to fully engage in space activities. In another year, India further clarified in its first space policy that the government would position the country as a major space power through commercialization, encouraging and facilitating broader private sector involvement across the entire value chain of the space economy with funding, institutional support, and regulatory frameworks.

This policy document, which holds significant guiding importance for the private space sector, clearly states that as the national space agency will focus on developing new technologies and accomplishing new missions in the future, the manufacturing and operation of space systems will be transferred to the private sector. Private enterprises can participate in the construction and launch of rockets and satellites, as well as own and operate satellites while providing related commercial services. The transfer of technology to the private sector is permitted. A single-window system named the Indian National Space Promotion and Authorization Center (IN-SPACe) will be established, leveraging retired scientists as a robust talent resource to impart, promote, and authorize space technologies to private enterprises.

TianGen Aerospace is the first startup to sign a memorandum of understanding and also the first company to receive authorization from [agency name]. Chandana, CEO and co-founder of TianGen Aerospace, emphasized in an interview with Indian media that the technology transfer clause in the space policy is crucial, as it will enable Indian startups to leverage decades of expertise and research. He stated that TianGen Aerospace's [rocket name] rocket received substantial official support during its conception, preparation, and execution phases. [Agency name] assisted the company in obtaining launch authorization, while [another agency name] provided the infrastructure and launch facilities for conducting multiple tests and integration activities.

Today, many startups like Skyroot Aerospace have the opportunity to establish partnerships with other major players. Thanks to technological support—ranging from Earth observation satellites to satellite launch vehicles and space propulsion systems—a private space technology ecosystem is gradually taking shape in India.

Just a few years after the government opened the space sector to private enterprises, a surge of space startups has emerged in India. According to Indian media reports, there were only a handful of space startups in the country a few years ago, but the number has now grown to around 150. At least 50 of these startups were founded in the past two years, covering various fields such as satellite manufacturing, launch vehicle development, Earth observation applications, and space-based data analytics.

On [specific date], a [specific type] polar satellite launch vehicle was launched from the Satish Dhawan Space Centre on Sriharikota Island in Andhra Pradesh, southeastern India. Xinhua/AFP

Indian private companies use technology to lead space business

The rise of technology-driven space startups and private companies is bringing fundamental changes to India's space sector. Previously, the development of space technology in India was largely driven by government budgets, but now private enterprises are leading India's space commerce with cutting-edge innovative technologies.

Dubbed as India's version of a space company, this firm has become the most funded space startup in India to date, thanks to its innovation, focus on affordability, and commitment to indigenous technology. Currently, the company has identified the lucrative small satellite market as its target area. Its series of rockets are specifically designed for cost-effective, on-demand launches, enabling both domestic and international clients to deploy small satellites with greater ease.

Satellites are typically launched on "rideshare" missions aboard rockets. The goal of Skyroot Aerospace is to capture the global market for small satellites. Chandana emphasizes that Skyroot Aerospace does not directly compete with others, "It's more like a luxury train that takes all passengers to one destination. Skyroot, on the other hand, is like a taxi, focusing on customized launch solutions." "As Indian space startups mature in the coming years, Skyroot will see an increasing number of domestic and international clients, especially some from the government sector. We aim to become one of the top three launch companies globally."

Agnikul Cosmos, a space launch vehicle startup incubated from the Indian Institute of Technology Madras, became India's second private company to launch a rocket after Skyroot Aerospace. However, the rocket it launched has set multiple records in India's space sector: this marks India's first rocket launch from a privately built launchpad, which was also constructed by Agnikul Cosmos. Not only is this rocket the world's first to be powered by a fully 3D-printed engine, but it also signifies India's first successful use of a semi-cryogenic engine. Reportedly, even major global players have yet to fully master semi-cryogenic engine technology. Unsurprisingly, after the successful launch, Lt Gen A.K. Bhatt (Retd), Director General of the Indian Space Association (ISpA), remarked, "For India's burgeoning private space industry, Agnikul Cosmos' achievement is nothing short of a historic milestone, offering us a glimpse into the future."

Today, Agnikul has its own rocket engine manufacturing facility. With mature technologies such as printing and semi-cryogenic engines, the company has significantly reduced production time and costs. It is claimed that an engine can be produced in just a few days. This technological advantage enables the company to quickly provide customers with customized, low-cost launch services.

It is an Indian space technology startup specializing in hyperspectral imaging and Earth observation applications. The company plans to deploy a constellation of 20 to 30 satellites called "Fireflies" into orbit. These hyperspectral Earth-imaging satellites will collect data related to agriculture, energy, mining, and other fields, enabling precise Earth monitoring.

In September this year, the first commercial satellites of India's first private satellite constellation were launched, which are the highest-resolution hyperspectral satellites in the world. According to industry insiders, while Earth observation and satellite imaging technologies have traditionally been dominated by a few global players, the "Firefly" constellation boasts a resolution of meters and a swath width of kilometers, outperforming competitors from the US and Europe. If successfully commissioned, its hyperspectral bands will offer greater imaging capabilities than others, marking a watershed moment for Indian industry.

Plans to launch a commercial satellite this year, followed by two more in the years and . -year-old founder and CEO Ahmad revealed, "The company has currently signed contracts with approximately clients, including mining giant Rio Tinto Group, BP, and the Indian Ministry of Agriculture. Some of these clients have already paid for data from its demonstration satellites. Future data contracts for the 'Firefly' constellation have also been secured."

"Our goal is to fundamentally transform how satellite data is utilized to make better decisions for the Earth," Ahmed told The Economic Times of India.

The entrepreneurial journeys of these space startups demonstrate that by focusing on low-cost, high-performance solutions, India's private space companies have not only met some of the nation's needs but also engaged in global competition, continuously catering to international clients. These startups have not only driven key innovations in India's space sector but also positioned the country as a global competitor in space technology.

The space program is ambitious

Official data shows that India's current space economy is valued at approximately $1 billion, accounting for a certain percentage of the global space market. The Indian government envisions that to establish India as a global leader in the space economy, the sector must grow several times over in the coming years. Accordingly, the government has set a target to expand the space economy to $44 billion by a certain year, including $11 billion in exports, capturing a 10% to 12% share of the global market. By another specified year, India aims to increase its share of the global space economy to 15%.

Regarding how to achieve these goals, Director Goenka stated, "Space communications hold the most promise, potentially generating billions in revenue, while satellite navigation (billions), Earth observation (billions), satellite manufacturing (billions), and satellite launches (billions) can drive other sectors of India's space economy."

Regarding how to increase India's share in the global space market, Director-General Bhatt's insight is that it is essential to focus on the small satellite market. In this regard, India not only possesses the cost-effectiveness of a super economy but also boasts very high technological capabilities. "This is an area where India can excel; we cannot directly challenge Musk's dominance in the heavy-lift launch vehicle market," Bhatt emphasized. He pointed out that India has the capability to produce small satellites for communication and Earth observation, which aligns with the global trend toward satellite miniaturization.

In the newly released fiscal year report, the Indian Finance Minister announced the launch of a national geospatial mission aimed at developing fundamental geospatial infrastructure and data.