India’s space sector, despite recent historic achievements, saw funding plummet to $59.1 million in 2024—a stark 55% decline from the previous year’s $130.2 million. This marks the first decline in five years for a sector crucial to India’s aspirations as a global space power.
Global Context
The decline outpaces the global space sector’s 20% investment drop. While global space companies raised approximately $28 billion over the last five years, Indian firms secured $354 million during the same period.
Recent Milestones
India’s space sector has captured global attention through:
- The successful Chandrayaan-3 moon landing
- Launch of the Aditya-L1 solar probe
- Growing private sector participation
Government Response
The government is actively supporting the sector:
- Approved a ₹10 billion ($119 million) fund for space startups
- Plans to expand India’s share in global commercial space markets
- ISRO projects 20-30% budget increase
Future Outlook
Industry experts remain optimistic about 2025: “The next 12 months will be crucial in shaping the future of India’s space tech startups,” says Vishesh Rajaram of Speciale Invest.
Pawan Chandana, Skyroot Aerospace founder, views the decline as part of natural investment cycles, expecting activity to increase as companies reach key milestones in 2025.
