NEW DELHI — India’s space sector is entering a rapid expansion phase as the government’s 2026‑27 budget earmarked ₹1.5 lakh crore for the Indian Space Research Organisation (ISRO) and new legislation opened launch services to private firms. The move follows Skyroot Aerospace’s successful Vikram‑1 flight in early 2025 and a wave of private satellite constellations announced this year.
Policy reforms unlock private participation
In December 2025 Parliament passed the Space Activities (Regulation) Bill, replacing the 1976 Space Activities Act. The new law created a licensing regime for private launch providers, clarified liability for commercial payloads and established a Space Development Fund with an initial capital of ₹12,000 crore. The Ministry of Science and Technology said the reforms would “catalyse indigenous innovation and reduce dependence on foreign launch services.”
Since the bill’s enactment, three private firms have secured launch licences: Skyroot Aerospace, Agnikul Cosmos and Bellatrix Aerospace. Skyroot’s Vikram‑1, a 70‑metre‑tall, three‑stage vehicle capable of lifting 300 kg to low‑Earth orbit, completed its maiden orbital insertion on 12 February 2025, delivering a CubeSat for the Indian Institute of Space Science and Technology. Agnikul’s Agnibaan, a 25‑metre, 100‑kg lift‑capacity rocket, performed a sub‑orbital test in August 2026, achieving a 150‑km apogee.
ISRO’s budget surge fuels deep‑space ambitions
ISRO’s 2026‑27 allocation of ₹1.5 lakh crore represents a 12 % increase over the previous year, the largest rise in a decade. Of the total, ₹30,000 crore is earmarked for the Gaganyaan crew‑ed programme, which aims to launch a second crewed mission by 2028. An additional ₹20,000 crore will fund the Chandrayaan‑4 lunar rover, scheduled for a 2027 launch, and a ₹15,000 crore investment in the Indian Deep Space Network to support interplanetary probes.
“The budget reflects the nation’s resolve to become a leading space power,” said ISRO Chairman S. Somanath in a press briefing on 5 September 2026. “We will continue to deliver reliable launch services while expanding our scientific portfolio.”
Private satellite constellations expand services
Experts cited by Telangana Today note that private companies are now deploying medium‑Earth‑orbit constellations for broadband, earth‑observation and navigation. In March 2026, a consortium led by Indian startup Pixxel secured ₹2,500 crore in Series C funding to launch a 12‑satellite constellation for high‑resolution imaging. The same month, a joint venture between Reliance Industries and SpaceX‑partner OneWeb received approval to operate a 48‑satellite broadband network covering the Indian subcontinent.
These initiatives are expected to generate ₹45,000 crore in annual revenue by 2030, according to a market analysis by the Centre for Policy Research. The analysis also projects that private launch services could capture 30 % of the global small‑sat market by 2035.
Challenges and outlook
Despite the optimism, analysts warn of supply‑chain bottlenecks and the need for skilled talent. The government’s recent partnership with the Indian Institutes of Technology to create a Space Technology Faculty aims to graduate 5,000 engineers annually by 2030. Additionally, the Ministry of Defence is reviewing export controls to ensure that commercial launch capabilities do not compromise national security.
Overall, the convergence of robust public funding, supportive legislation and a burgeoning private sector is reshaping India’s space landscape. The next 12 months will test whether the country can sustain launch cadence, meet ambitious deep‑space timelines and translate commercial activity into measurable economic growth.
