Vikram-1 Mission and India's Space Sector Reforms
Skyroot Aerospace is preparing to launch Vikram-1, India's first privately developed orbital launch vehicle, between July 12 and August 4, 2026, under Mission Aagaman. The rocket can place 350 kg into Low Earth Orbit (LEO) at an altitude of 450 kilometers and features an all-carbon composite structure, reliable solid-fuel boosters, and a 3D-printed liquid engine. The mission will deploy multiple customer payloads including Skyroot's SCOPE satellite, DCUBED's technology demonstration payload, Grahaa Space's SOLARAS S3 satellite, and Cosmoserve Space's Embrace robotic arm designed to capture orbital debris. Additionally, it will carry two symbolic payloads: "Cosmic Bloom" floral artwork and an 18-karat gold micro-rocket featuring microscopic sculptures of C. V. Raman, Vikram Sarabhai, and A. P. J. Abdul Kalam.
Sector Growth and Reform Impact
India's space sector has experienced dramatic growth, with the startup ecosystem expanding from just one startup in 2014 to over 400 in 2026. The space economy is currently valued at approximately $8.4 billion and is projected to grow five-fold to $40-45 billion by 2030, with a target of reaching $100 billion by 2040. This growth is driven by the Indian Space Policy 2023, which opened the entire space value chain to Non-Government Entities (NGEs) across satellite manufacturing, launch services, space applications, and downstream services.
Regulatory Framework and Institutional Support
The Indian National Space Promotion and Authorisation Centre (IN-SPACe) serves as an autonomous single-window regulator, having registered over 4,500 organizations and issued 133 authorizations as of June 2026. IN-SPACe has facilitated $150 million in investments into Indian space startups during calendar year 2025, with the top 10 startups securing a confirmed order book of the same value. The agency has also facilitated 118 technology transfer agreements and signed 189 Joint Project Implementation Plans (JPIPs), Technology Partnership Agreements (TPAs), and Business Partnership Agreements (BPAs).
Funding Initiatives
Three major funding mechanisms support the sector: the IN-SPACe Seed Fund Scheme provides grants of up to ₹1 crore to space startups and Micro and Small Enterprises; a ₹1,000 crore Venture Capital Fund will be deployed over five years from FY 2025-26 through FY 2029-30 with annual investments between ₹100-250 crore; and a ₹500 crore Technology Adoption Fund offers funding of up to 60% of project cost for startups/MSMEs and up to 40% for large industries, capped at ₹25 crore per project.
Foreign Investment Policy
The liberalized FDI policy permits up to 74% automatic FDI in satellite manufacturing and operations, 49% automatic FDI in launch vehicles and spaceports, and 100% automatic FDI in manufacturing of satellite components and subsystems. Investments beyond these thresholds require government approval.
Commercial Achievements and Technology Transfer
NewSpace India Limited (NSIL), as ISRO's commercial arm, has witnessed a tenfold increase in revenue and has launched 141 satellites total (138 international/customer satellites and 3 Indian satellites) as of July 2026. Over 70 Technology Transfer Agreements had been executed by December 2025, accelerating commercialization of ISRO-developed technologies. Notable achievements include India's first dedicated commercial LVM3 mission in October 2022 launching 36 OneWeb satellites, Vikram-S as India's first privately developed rocket in November 2022, Agnikul Cosmos becoming the first NGE to launch from a private launch pad in May 2024, and a ₹511 crore, 10-year transfer of SSLV technology to Hindustan Aeronautics Limited in February 2026.