India’s space industry is experiencing unprecedented growth thanks to regulatory reforms, increased private sector involvement, and stronger US-India cooperation, positioning the country to claim a significant share of the global market in the coming years.
India’s space industry is emerging as one of the most promising fronts in the country’s wider economic liberalisation, with a US Department of Commerce alert forecasting that its share of the global market could rise to 10 per cent within 5 to 7 years from less than 2 per cent today. The department said the expansion is being driven by policy changes, a more active private sector and deepening commercial links with the United States.
According to the International Trade Administration, India’s space sector has developed quickly since reforms began in 2020, when private firms were given access to a wider range of space activities. That process was formalised in the 2023 Indian Space Policy, which set out a regulatory framework for commercial operations, while changes in 2024 eased foreign direct investment rules and opened further room for overseas capital, including from US companies.
The department said India’s space ecosystem is no longer centred solely on the state-run Indian Space Research Organisation. Start-ups are now moving into satellite systems, advanced spaceflight, connectivity, manufacturing and other technologies, with some also seeking to expand operations in the United States. The alert named India as its “Market of the Month” and said the country offers growing opportunities for international companies as privatisation gathers pace.
Washington and New Delhi have also been strengthening institutional ties. The US-India Civil Space Joint Working Group and the Commercial Space sub-working group are intended to reduce barriers in areas including market access, procurement, foreign direct investment and export controls, according to Commerce Department material. The Office of Space Commerce has separately sought industry input on how to improve US competitiveness in India, while the department says recent cooperation has included a joint space situational awareness workshop in June 2026. It has urged US firms interested in the market to attend the Bengaluru Space Expo from 7 to 9 September.
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