In 2024, India’s burgeoning space sector experienced a significant setback, with funding plummeting by 55% to $59.1 million from $130.2 million in 2023, according to data from market intelligence platform Tracxn. This decline mirrors a global trend, as worldwide investment in the space industry contracted by 20% during the same period.
Global and Domestic Investment Trends
Over the past five years, global space companies have collectively secured approximately $28 billion in funding. In contrast, Indian space firms have attracted around $354 million during this timeframe, highlighting the relatively nascent stage of India’s private space industry.
Government Initiatives to Revitalize the Sector
In response to the funding downturn and to stimulate growth, the Indian government approved a 10 billion rupee ($119 million) fund in October 2024, dedicated to supporting space startups. This initiative aims to bolster India’s share of the global commercial space market, with an ambitious target to expand from the current 2% to a $44 billion market share by 2033.
Industry Outlook for 2025
Despite the challenges faced in 2024, industry stakeholders remain optimistic about a rebound in 2025. Vishesh Rajaram, managing partner at Speciale Invest—which backs companies like Agnikul Cosmos, GalaxEye, and Inspecity—remarked, “The next 12 months will be crucial in shaping the future of … .” Similarly, Pawan Chandana, founder … , noted that the decline aligns with natural investment cycles and anticipates increased investment activity as leading companies approach critical milestones in … .
ISRO’s Role and Budget Projections
The Indian Space Research Organisation (IS … continues to play a pivotal role in the nation’s space endeavors. ISRO has projected a 20%-30 … the development of heavy-lift rockets. This anticipated budget enhancement underscores the government’s commitment to advancing India’s space capabilities.
Conclusion
While the 55% decline in funding for India’s space sector in 2024 presents challenges, the combination of government initiatives, industry resilience, and anticipated milestones in 2025 offers a pathway for recovery and sustained growth. The coming year will be instrumental in determining the trajectory of India’s space industry and its role in the global arena.
