New Delhi, Oct 22 — India’s aerospace industry is expected to grow twice at the pace of the global market, driven by state‑backed reforms, rising private capital and closer collaboration with the Indian Space Research Organisation (ISRO), a new report has said.
The report from Forbes cited Arkam Ventures as saying that the sector is currently valued at $13 billion and is forecast to over triple to $40 billion by 2030, with some estimates projecting a $44 billion space economy by 2033.
"To win the celestial race, India’s space startups need to strongly leverage the nation's unique attributes in software development to cater to the downstream market of data mining from satellites," the report said.
Private firms are expected to participate in up to 45 launches a year for international customers by 2030 and to manufacture one‑third of the world’s earth‑observation satellites, it added.
India is also likely to emerge as a major exporter of avionics, Global Navigation Satellite System (GNSS), Satellite Communication (SATCOM) and ground Radio Frequency (RF) systems.
However, the realisation of ambitions depends on startups’ ability to attain recurring global launches, contracts, and reliable satellite services.
The total cumulative private investment in this sector has reached $600 million over the years. Space tech startups have raised nearly $256 million in 2026, and the sector is expected to raise up to $3.5 billion of venture capital and private equity investments over the next five years.
“Capital is making a beeline for India’s space startups because the country can build sophisticated aerospace systems at a fraction of the cost of the US and Europe," the report cited Sanjay Kumar, cofounder of EON Space Labs, as saying, who added that India’s engineering talent is deep and manufacturing is cost-efficient compared to other nations.
Small technology-driven private companies are building rockets for carrying payloads, developing satellites, using technology transfer agreements transferred by ISRO’s commercial arm, NewSpace India Limited (NSIL).