Why it's boom time for start-ups in the Indian space sector

A space start-up is a young private company that creates technology, products, or services for space missions and users. India’s reforms changed these firms from suppliers working for the government into owners developing their own space businesses. They matter because space technology supports national needs, security, communication, and future commercial growth.

For example, Noida-based Omnipresent Robot Technologies developed navigation software for Pragyan, the rover used in Chandrayaan-3. The software helped the rover determine its movement and position on the Moon. Other start-ups are building autonomous swarming satellites, onboard computer systems, advanced sensors, and high-resolution mapping satellites.

India had nearly 400 space start-ups after seven years of reforms, compared with single-digit numbers earlier. Government grants, assured minimum orders, contracts, and private “patient capital” are making development easier. However, India still needs more component manufacturing and larger funding. Companies also need longer-term support before competing more strongly with the United States and China.

India’s space start-up sector has expanded from single-digit numbers to nearly 400 companies in seven years. Reforms opened space activities to greater private participation. Firms are moving beyond supplying parts and toward owning space ventures.

Kepler Aerospace CEO Navneet Singh calls this shift “zameen asmaan,” or a world of difference. Government support includes grants and contracts with minimum order quantities. This lets companies develop technology with an assured order, while private investors provide patient capital.

Growth is real, but the sector remains unfinished. India still needs a stronger component-manufacturing ecosystem and more funding for critical technologies. Start-ups are also pursuing advanced systems, including autonomous swarming satellites, with longer government support needed.

India’s reforms changed private companies from suppliers working under direction into owners developing and pursuing space technologies themselves. Before reforms, private firms mainly formed a vendor ecosystem; afterward, an owner ecosystem began emerging.

The change also made participation easier through government grants and contracts tied to minimum orders. Omnipresent Robot Technologies, for example, developed navigation software for Pragyan, the Chandrayaan-3 rover. This support lets start-ups build technology with greater confidence because an order may follow development.

In seven years, India’s space start-ups grew from single-digit numbers to nearly 400. Private firms still mainly build subsystems, while India needs stronger component manufacturing. Longer-term private investment is becoming more available, but start-ups still seek greater funding and sustained government support.

Government grants reduce upfront costs, allowing start-ups to develop difficult space technology without carrying the entire financial burden alone. Easier access to support lowers delays and barriers, while a guaranteed minimum order reduces fear of finding buyers.

Aakash Sinha’s Omnipresent Robot Technologies developed navigation software for Pragyan, the Chandrayaan-3 moon rover. Sinha said government contracts can combine development funding with a minimum order. This means a company can build technology with clearer revenue ahead, rather than betting everything on uncertain demand.

The change is visible: India’s space start-ups grew from single digits to nearly 400 in seven years. Private “patient capital” is also more accessible, despite space projects’ long timelines. Risks have fallen, but India still needs longer government support, larger funding for critical technologies, and domestic component manufacturing.

ISRO and government agencies play two roles: they open doors for private firms, while retaining control over sensitive capabilities. ISRO provides an institutional bridge, but the government decides which work remains public and which can be outsourced. This balance matters because space projects need funding, trust, and long development timelines.

Aakash Sinha’s Omnipresent Robot Technologies developed navigation software for Pragyan, the Chandrayaan-3 moon rover. The Ministry of Defence also contracted the company to build highly detailed, accurate 3D-mapping satellites. Government grants and assured minimum orders reduce risk, letting start-ups develop technology with a clearer path to revenue.

That support helped space start-ups rise from single-digit numbers to nearly 400 in seven years. Yet founders want larger funding, more orders, and longer handholding for critical technologies. ISRO remains a gatekeeper because some capabilities are too costly or strategically sensitive to release. India still needs component manufacturing and advanced systems, including interconnected and swarming satellites.

A domestic component-manufacturing ecosystem gives space start-ups reliable access to parts for complete systems. Without it, companies may remain vendors building sub-systems, rather than owners delivering integrated products at scale. Local production also reduces supply dependence and helps convert promising designs into repeatable manufacturing.

Omnipresent Robot Technologies worked on the navigation software for Pragyan, the Chandrayaan-3 moon rover. That contribution shows Indian firms can develop advanced capabilities, while broader hardware production remains necessary around them. More domestic component makers would connect software, sub-systems, and final spacecraft, making growth less dependent on scattered suppliers.

The change is substantial: India had nearly 400 space start-ups after seven years of reforms. That number rose from single-digit levels. Singh says the private sector is still at the walking stage, and running will take years. Government grants, assured orders, and patient private capital can help companies build this missing capacity.

Interconnected satellites are spacecraft that share data, while onboard computers process information aboard each satellite. Together, they can spot changes, combine observations, and choose useful actions faster, without sending every decision to Earth.

For example, Omnipresent Robot Technologies worked on navigation software for Pragyan, the Chandrayaan-3 moon rover. Similar onboard intelligence could help a satellite interpret images, coordinate with teammates, and adjust its work when conditions change. A swarm extends this idea: satellites cooperate rather than relying on one powerful spacecraft or constant instructions.

India is building toward these capabilities, but the ecosystem is still developing. Space start-ups grew from single-digit numbers to nearly 400 in seven years after reforms. Kepler Aerospace is working on autonomous swarming satellites, while founders call for more funding and longer government support. These systems could help India narrow its space-capability gap with the United States and China.