Funding for India's space sector, a vital component of the country's aspirations to become a global superpower, fell by 55% in 2024, dropping to $59.1 million from $130.2 million in the previous year, as reported by market intelligence platform Tracxn.
This decline, which occurred alongside a 20% global reduction in space sector investments, marks the first drop in at least five years. Over the past five years, space companies globally raised approximately $28 billion, while Indian companies secured around $354 million in the same period, according to Tracxn data.
A satellite model is placed on a picture of Earth in this illustration. File image/ Reuters
India’s space industry has garnered international attention with achievements such as the Chandrayaan-3 lunar landing and the Aditya-L1 solar probe launch. The growth of its private space sector is increasingly viewed as essential for reaching the long-term goal of establishing a $44 billion private space economy.
In a bid to boost the sector, the government approved a 10 billion rupee ($119 million) fund in October 2024 to support space startups and outlined plans to expand India’s share of the global commercial space market by 2033.
Industry experts are optimistic about a rebound in funding in 2025.
“The next 12 months will be crucial in shaping the future of India’s space tech startups,” Vishesh Rajaram, managing partner at Speciale Invest, which supports companies like Agnikul Cosmos, GalaxEye, and Inspecity, stated.
In 2023, India's space sector reached a funding milestone of $130.2 million, marking a 32.9% increase from 2022, fueled by initiatives in satellite technology, launch vehicles, and space exploration.
“The decline aligns with the natural investment cycles of the industry,” said Pawan Chandana, founder of Skyroot Aerospace. “As leading companies approach critical milestones in 2025, investment activity is likely to pick up.”
Between 2020 and 2024, Indian space startups secured $353.5 million through 72 funding rounds. Additionally, the Indian Space Research Organisation (ISRO) has anticipated a 20%-30% rise in its budget to facilitate deep space exploration and the development of heavy-lift rockets.
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