Early decades India's interest in space travel began in the early 1960s, when scientists launched a
Nike-Apache rocket from TERLS,
Kerala. The
Indian National Committee for Space Research was subsequently set up, which later became ISRO functioning under a new independent DoS in the 1970s under the
Prime Minister of India. ISRO joined the
Interkosmos program to launch its first satellite,
Aryabhata, from the former Soviet Union in 1975.
SLV-3, a locally developed space rocket, was introduced in 1979, enabling India to undertake orbital launches. Experience gained from SLV-3 was used to develop ASLV to develop technologies for launching satellites in
geostationary orbit, but this ended up having very limited success and was eventually discontinued. However, the study of a homegrown
medium-lift launch vehicle went on, which lead to the realisation of the PSLV.
Introduction of PSLV and commercial space missions Antrix Corporation was set up in 1992 to market ISRO's technology, launch services and transfer technology to Indian private firms, dawning the commercial space sector in India. The PSLV rocket, introduced in 1993, enabled India to launch its polar satellites. Despite initial failures in its first two flights, PSLV had no further failures and emerged as ISRO's primary workhorse for launching domestic and foreign satellites. The development of GSLV and
LVM3 subsequently began in the 1990s and 2000s to attain the capability to launch
communication satellites. However, the launchers didn't become operational until decades later, as India initially faced a great problem in the development of
cryogenic engines. Later,
NewSpace India Limited (NSIL) replaced Antrix as the commercial arm of ISRO.
Emergence of the private sector The Indian space program emerged as an economic sector with government-backed investments with official institutions in the military and civilian administrations over decades of engineering. Over four decades, ISRO continued transferring technologies to
small and medium enterprises (SMEs), leading to there being over 500 suppliers of various components in 2017.
India's IT industry started engaging in this sector in the 1990s. The Department of Space actively promoted the growth of the sector, leading to the establishment of the manufacturing of various systems. Large mapping projects for various civilian and military requirements were outsourced by the government, which drove the growth of India's private space sector. However, the
private sector still played a supporting role, while the government continued to dominate the space sector. In the late 2010s, a large number of startups started to emerge throughout the country with their own proposals and concepts to develop various satellite technologies and rockets. A range of initiatives to deregulate the private space sector were introduced by
Narendra Modi's cabinet in June 2020, and the
Indian National Space Promotion and Authorisation Centre (INSPACe) was established for incubating technology into private firms, known as Non-Government Private Entities (NGPEs) by DOS. NGPEs were included as a crucial part of ISRO's Space Communication Policy draft issued in October 2020. As of 2021, a new
Space Activities Bill and a space policy are being drafted by
NALSAR Centre for Aerospace and Defence laws to regulate space manufacturing and the legal aspects of the industry in India. An amendment was made in the FDI policy for space sector through a gazette notification dated April 16, 2024, called the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024. The liberalized entry routes under the amended policy are aimed at attracting potential investors in the Indian companies in space. As per them, up to 74 per cent FDI for satellite manufacturing & operation, satellite data products and ground segment & user segment are allowed under automatic route. Beyond 74 per cent these activities are under government route. FDI up to 49 per cent is allowed for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft are under automatic route but beyond 49 per cent government permission would be required. The cabinet on February 21 had allowed 74% foreign direct investment (FDI) under automatic route for satellite manufacturing, up to 49% under automatic route for launch vehicles, and up to 100% under automatic route for manufacturing of components and systems. The new rules will come into effect from April 16 2024. Throughout this time, various nondisclosure agreements and tech transfers have been taking place between ISRO and private entities. In July 2024,
Minister of Finance Nirmala Sitharaman announced that the Indian government will form a $119 million venture capital find for space startups in India. The
Union Cabinet of India approved the creation of the venture capital fund in October 2024. India has more than 400 private space enterprises as of 2024, up from 54 in 2020. Some Indian companies, including
Bellatrix Aerospace, a satellite propulsion manufacturer, are establishing manufacturing facilities in the U.S. Additionally as of May 2025, technology for ISRO's
SSLV is in the process of being
transferred to private firms by ISRO. By bridging the gap between defence user requirements and private-sector innovation, DIO promotes dual-use technological development that supports both strategic and commercial applications. The launch of Mission DefSpace in October 2022 marked a significant milestone—uniting startups, MSMEs, and academia to co-develop solutions in satellite communication, Earth observation, Synthetic Aperture Radar (SAR), AI-driven geospatial analytics, and space situational awareness (SSA). With challenge-based funding, technology mentorship, and procurement-linked incentives, DIO's role has been instrumental in nurturing a sustainable ecosystem for India's growing space-defence industry. Under Mission DefSpace, several companies have signed agreements with DIO/iDEX to develop technologies critical for India's military and strategic space applications. For instance, Sisir Radar Pvt. Ltd., founded by former ISRO Director Tapan Misra, is developing an L- and P-band continuous-wave Synthetic Aperture Radar (SAR) payload along with an unfurlable, electronically steered antenna for small-satellite platforms—enhancing India's all-weather imaging and reconnaissance capabilities. Similarly, Space Kidz India has taken up the challenge of designing CubeSat deployers for microgravity and small-satellite missions, supporting low-cost and rapid satellite deployment for defence and scientific applications. Kepler Aerospace Pvt. Ltd., another participant, is working on CubeSat-class satellite platforms designed for real-time surveillance and communication relays, demonstrating the diversity of innovation emerging through the DefSpace initiative. Alongside these, firms such as Digantara, Antsys Innovations, SpacePixxel, GalaxEye Space, and InspeCity Space Laboratories are contributing across domains including space domain awareness, RF communications, and on-orbit servicing—collectively reinforcing India's goal of achieving self-reliance and strategic depth in space-defence technologies. == Industry overview ==