India’s space technology sector is undergoing a transformative shift, presenting a lucrative investment opportunity. Once dominated by state-run ISRO, the sector is now experiencing a wave of private sector participation, supported by favourable government policies. With a projected market size of $77 billion by 2030, expectation of growing at a 26% CAGR from 2023 to 2030, India’s spacetech industry is set to become a key player in the global space economy, according to a report.
Key developments such as privatisation, increased foreign direct investment (FDI), and growing interest from venture capitalists are paving the way for innovative startups to enter the market. As India aims to capture a larger share of the global satellite launch market, the space tech sector is no longer just about exploration—it’s a profitable investment frontier.
The Indian government has taken significant steps to liberalise the space sector, introducing policies that encourage private participation. The establishment of IN-SPACe (Indian National Space Promotion and Authorisation Centre) has created a framework for startups and private firms to collaborate with ISRO. This move has enabled the private sector to launch satellites, develop propulsion systems, and offer space-based services for both domestic and international clients.
Additionally, MSMEs play a crucial role in India’s space ecosystem, supplying critical components and services to larger firms. With increased funding avenues, global partnerships, and an expanding market for downstream applications such as satellite communication and earth observation, India’s space tech industry is at the cusp of exponential growth.
HAL is a state-owned aerospace and defense company specialising in aircraft manufacturing and propulsion systems. It plays a crucial role in India’s space missions by providing key components and support.
BEL focuses on electronics and communication systems, contributing to radar systems and satellite components essential for space technology.
L&T is expanding its aerospace division to capitalize on India’s growing private space sector. The company collaborates with ISRO on projects like Chandrayaan and Gaganyaan, aiming to strengthen its position in launch vehicle manufacturing.
Specializing in precision electronic systems, Data Patterns provides critical components for space and defense applications, including satellite subsystems and launch vehicle electronics.
MTAR supplies crucial components for launch vehicles and satellites, playing a significant role in India’s space exploration efforts.
MIDHANI is a government-owned enterprise engaged in the manufacturing of high-performance alloys and special metals used in space technology. The company supplies critical materials for rocket engines, satellite structures, and aerospace applications.
Walchandnagar is a leading supplier of precision-engineered components for ISRO’s launch vehicles and satellite systems. With decades of experience in aerospace manufacturing, it plays a key role in India’s growing space industry.
Linde India provides cryogenic solutions and industrial gases essential for rocket propulsion and satellite applications. Its expertise in liquefied gases makes it a vital contributor to India’s space sector.
Centum Electronics designs and manufactures electronic subsystems for satellite communication and space applications. The company’s expertise in high-reliability electronics positions it as a key player in India’s space technology ecosystem.
Infosys has strategically entered the space technology sector by investing approximately ₹17 crore (around $2 million) in GalaxEye Space Solutions, a Bengaluru-based spacetech startup. This investment, made through the Infosys Innovation Fund, grants Infosys a minority stake in GalaxEye, not exceeding 20% of the company’s outstanding share capital.
The Indian government’s push towards privatisation and increased foreign direct investment in the space sector is expected to drive growth, making these companies noteworthy for potential investment opportunities.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 19, 2025, 3:38 PM IST
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