The Indian Parliament received an update on private sector participation in the space sector through IN-SPACe, reporting significant growth and investment milestones. In 2026, the private space sector attracted $187 million in investment, with IN-SPACe granting 108 authorizations to Non-Government Entities for various space activities including satellite/payload establishment and operation, and launch of space transportation systems.
The regulatory framework is governed by the "Norms, Guidelines and Procedures for Implementation of Indian Space Policy-2023" which evaluates authorization applications while protecting strategic, security, and national interests. IN-SPACe is developing "Safety and Security Guidelines for space activities in India undertaken by Indian entities" through stakeholder consultations.
The Government of India has implemented multiple initiatives to support space startups, including the Indian Space Policy 2023 defining stakeholder roles, liberalized FDI policy, discounted pricing policy for ISRO facilities access, establishment of ₹1000 crore Venture Capital Fund, ₹500 crore Technology Adoption Fund for technology commercialization, IN-SPACe Seed Fund Scheme, access to ISRO facilities and mentorship, skill development initiatives, technical centre for testing and simulation, technology transfer from ISRO, POEM platform for space worthiness testing, and business promotion events.
Authorization has been granted to 17 startups for various space activities. Additional schemes include the "Satellite Bus as a Service (SBaaS)" initiative and encouragement for state governments to establish space manufacturing clusters.
Policy reforms include implementation of Indian Space Policy-2023 and liberalized FDI policy. Infrastructure development involves expansion of ISRO facilities accessible to NGEs, establishment of IN-SPACe Technical Centre, and space manufacturing clusters. Skill development includes 14 short-term courses covering all aspects of the space sector.
Private space startups have grown from just 1 in 2014 to over 400 currently, with cumulative private investment reaching $618.5 million by 31 March 2026. The investment growth shows progression from $100.5 million in 2021-22 to $348.5 million in 2023-24. Notable achievements include Skyroot Aerospace becoming the sector's first unicorn with backing from GIC and BlackRock, Digantara securing $50 million with SBI Investment, Agnikul Cosmos receiving $2.7 million equity and ₹25 crore from Tamil Nadu government, GalaxEye raising over $11 million, and Dhruva Space securing ₹105 crores ($12.5 million) in May.
Private sector capabilities have been demonstrated through multiple orbital missions including Pixxel's six-satellite Firefly constellation (the highest-resolution commercial hyperspectral system), Dhruva Space's Thybolt-3 and LEAP-1 missions, and collaborative flights. The PSLV Orbital Experimental Module (POEM) has carried payloads from multiple private companies including GalaxEye, Bellatrix, Takeme2Space, PierSight Space, Manastu Space, and NSpace Tech.
International expansion includes Digantara opening offices in the United States and Europe, Pixxel serving customers across multiple continents, and IN-SPACe maintaining working relationships with over 45 countries with three cooperation agreements with foreign space agencies. The Earth Observation PPP concession brought together Pixxel, Dhruva Space, SatSure and PierSight as Allied Orbits to build India's first privately owned Earth-observation constellation with 12 multimodal satellites over five years with private commitment of approximately ₹1,200 crore.