The report also forecasts five Indian companies featuring among the world’s top 10 companies across the space-tech value chain in the coming years.
| Photo Credit: PTI
India’s space economy, currently estimated to be at $13 billion, is set to touch $40 billion by 2030, according to the recent India Spacetech-2026 report by early-stage venture capital firm, Arkam Ventures.
Titled ‘India’s Space Odyssey’, the report forecasts the sector to grow at twice the pace of the global market and that structural shifts in India’s spacetech ecosystem will propel it to the world’s third-largest space-tech economy by 2030. The growth will be fuelled by cost-efficient engineering, deep manufacturing capabilities and a new generation of startups building advanced space technologies for customers worldwide, it notes.
Higher capital inflow expected
Over the past five years, more than 300 space-tech startups have emerged in India, in areas such as satellite manufacturing, earth observation, launch vehicles and in-space solutions.
“More than two-thirds of the historical capital flows in the Indian spacetech sector have come in the last 5 years, post the space policy being formulated. We expect $3-$5 Bn of private capital flows in the sector over the next couple of years to fund cutting edge space innovations.” the report reads.
According to the VC, this momentum is built on ISRO’s legacy of low-cost, high-impact missions and its active support for private innovation.
“Its frugal engineering philosophy has shaped how startups design, test, and deliver products. Access to ISRO facilities and technology transfers has helped reduce time and cost to market. 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. This combination of institutional backing and fresh talent is enabling startups to move from prototypes to market-ready solutions at unprecedented speed,” a statement from the firm said.
Indian companies to be among world’s top
The report also forecasts five Indian companies featuring among the world’s top 10 companies across the space-tech value chain in the coming years.
“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 $3-$3.5 Bn 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,” said Rahul Chandra, Managing Director, Arkam Ventures.
The report also projects that by 2030 Indian private players will conduct 40 to 45 launches each year 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.
Aerospace scientist B.N. Suresh, former Director of Vikram Sarabhai Space Centre and former chancellor of Indian Institute of Space Science and Technology, unveiled the report at the Arkam Spacetech Meetup held in Bengaluru.
Published – January 23, 2026 05:49 pm IST
