New Delhi, Dec 30 (NationPress) - The unwavering policy continuity and clear institutional framework established by the government, coupled with an expanding model of public-private partnerships, significantly contributed to the expansion of India's private space sector in 2025, stated Lt. Gen. AK Bhatt (Retd.), Director General of the Indian Space Association (ISpA) on Tuesday.

Bhat noted that 2025 marked a pivotal year for India's space sector, where policy reforms evolved into actionable outcomes across various domains, including satellite manufacturing, Earth observation, space data, and satellite communications.

“The growth observed in 2025 was predominantly driven by the private industry. This year witnessed the awarding of contracts, establishment of production lines, deployment of satellites, and advancements in launch vehicles approaching operational readiness, alongside the scaling of data-driven services across civilian, commercial, and strategic sectors,” he emphasized.

India’s space economy, which is currently estimated at around $9 billion, is poised to reach approximately $44 billion in the next decade.

In 2025, public-private partnerships emerged as a primary operational framework throughout the space value chain. India’s contribution to the global space economy, currently around 2 percent, is expected to rise to nearly 8 percent by 2033, largely driven by private sector initiatives.

“Policy instruments like the New Space Policy 2023, liberalized FDI Policy 2024, and the implementation of the Indian Telecommunications Act 2023 have provided the predictability necessary for long-term private investment,” Bhatt remarked.

The liberalized FDI norms and IN-SPACe’s single-window authorization framework have paved the way for increased participation from both domestic and international entities.

“In 2025, India’s space ecosystem achieved a significant milestone with more than 300 active space startups engaged in areas such as launch vehicles, satellite platforms, Earth observation, satellite communications, propulsion, electronics, space situational awareness, and downstream analytics,” Bhatt added.

Moreover, India’s private space companies progressed from demonstration to deployment in 2025. Skyroot Aerospace and Agnikul Cosmos made strides in developing private orbital and semi-cryogenic launch systems, fostering a competitive domestic launch market.

Recently, PM Modi unveiled Skyroot’s Vikram-I launch vehicle and the Infinity Campus.

Pixxel launched India’s inaugural private satellite constellation, the Firefly series, utilizing SpaceX Falcon 9 rockets in early and mid-2025, successfully deploying six hyperspectral satellites for high-resolution Earth imaging.

Digantara expanded its space situational awareness infrastructure by launching its first commercial space surveillance satellite, SCOT, while companies such as Bellatrix Aerospace, ThrustWrks, OmSpace, Xovian, and GalaxEye showcased operational capabilities in propulsion, launch subsystems, and imaging platforms.

Additionally, policy support was reinforced in the Union Budget 2025-26 with initiatives like the National Geospatial Mission, a Fund of Funds for startups, enhanced credit guarantee mechanisms, expansion of Atal Tinkering Labs, and a dedicated DeepTech Fund of Funds, according to Bhatt.

Indian private space startups raised nearly $150 million during FY 2025, bringing the total funding to over $617 million to date.

The operationalization of the Rs 1,000 crore IN-SPACe Venture Capital Fund and approval of the Rs 1 lakh crore Research, Development, and Innovation Scheme have added substantial depth to the funding ecosystem for space and deep-tech innovations.

IN-SPACe’s Technology Adoption Fund of Rs 500 crore, launched this year, is set to enhance private sector space innovation by funding startups/MSMEs (up to 60 percent of costs) to develop commercially viable early-stage space technologies, Bhatt concluded.