The Indian space sector is expected to grow at twice the pace of the global market, positioning it to be the third-largest spacetech economy, and taking it from the current USD 13 billion to USD 40 billion by 2030, according to Arkam Capital’s India spacetech report 2026. 

The growth will be fueled by cost-efficient engineering, deep manufacturing capabilities, and a new generation of startups building advanced space technologies for customers worldwide.

According to the report, over the past five years, more than 300 spacetech startups have emerged in India, with many progressing from prototypes to market entry in areas such as satellite manufacturing, earth observation, launch vehicles, and in-space solutions. Arkam said that this momentum comes from the back of ISRO’s low-cost, high-impact playbook and active support for the private sector. Access to ISRO facilities and technology transfers has also helped reduce time and cost to market. 

The report said that a “talent flywheel” is emerging with companies founded by alumni of ISRO and institutions such as BITS and IIT Madras, supported by more than 25,000 skilled engineering graduates in aerospace and allied sectors annually. 

The report also highlights the new wave of category leaders delivering capabilities that were once limited to national space agencies. Skyroot Aerospace, an Arkam Ventures portfolio company founded, is among the world’s top three private launch vehicle players, having executed India’s first private suborbital mission in 2022 and test-fired the Kalam-1200 solid booster in August 2025 ahead of the maiden orbital launch of Vikram-1. 

In space situational awareness, Digantara has launched India’s first indigenous space surveillance mission and operates the world’s smallest digital space weather instrument. In a historic first for India, Pixxel-led consortium comprising Dhruva Space, Piersight, and Satsure will design, build, and operate India’s national Earth Observation constellation under a public-private Partnership. 

The upcoming Kulasekarapattinam spaceport in Tamil Nadu is said to enable more efficient SSLV (Small Satellite Launch Vehicles) launches, reducing fuel requirements and increasing payload capacity. The report noted that India is also largely self-reliant in major components, with domestic manufacturing meeting about 90 per cent of launch vehicle needs, 45 per cent of satellite components, and 100 per cent of propellants and alloys, supported by more than 11,000 vendors supplying both ISRO and a growing number of private operators.

 Policy support, including dedicated funding programmes and large-scale R&D incentives, is also lowering the cost and risk of long-cycle technology development, helping startups bring advanced systems to market faster.

According to Rahul Chandra, Managing Director, Arkam Ventures, “India is uniquely positioned to lead the global spacetech sector, fuelled by the unique ecosystem development role played by ISRO and the support from the Government. Over the next five years, we expect USD 3 – 3.5 billion of VC and Private Equity investments in the sector. We foresee 5 Indian startups feature among the world’s top 10 companies in vehicle launch, situational awareness, earth observation satellite manufacturing, and space debris handling.”

The report projects that Indian private players will conduct 40 to 45 launches each year by 2030 for global customers, manufacture one-third of the world’s Earth Observation satellites, and emerge as major exporters of avionics, GNSS, SATCOM, and ground RF systems.