Startups Are Powering India’s Space Tech Boom
By Saghir Hussain ·
India’s space startups are growing at twice the rate of the global market — and British firms risk missing the launch window.
That is the blunt assessment from a new Forbes analysis published today, which details how regulatory reforms, fresh capital and a pragmatic partnership with the Indian Space Research Organisation (ISRO) have turned a once-state-dominated sector into a magnet for private enterprise. The report predicts the Indian space economy will hit $44bn by 2033, up from $8.4bn today. For context, the UK space sector — worth £17.5bn and employing 48,000 people — is projected to grow at half that pace.
Reforms and ISRO partnership driving growth
The turning point came with the 2020 Spacecom and SpaceRS policies, which opened satellite communications and remote sensing to private players. Since then, startups like Skyroot Aerospace, Pixxel and Agnikul Cosmos have moved from prototype to commercial launch in record time. ISRO, once the sole gatekeeper, now acts as anchor customer and technology partner — sharing test facilities, tracking data and even launch slots on its PSLV and upcoming SSLV rockets.
“This isn’t a handout model,” said a senior ISRO official quoted in the Forbes piece. “We buy services. They build capability. Both sides scale faster.” The result: 189 space startups registered with IN-SPACe, India’s new authorisation body, as of September 2026 — up from 54 two years ago.
What it means for UK space sector and trade
The UK has its own cluster of small-launch and satellite firms — Skyrora in Glasgow, Orbex in Forres, Open Cosmos at Harwell. But funding remains fragmented. British startups still rely heavily on ESA contracts and UK Space Agency grants, while Indian peers tap a deeper pool of domestic venture capital and sovereign wealth money. The failed Virgin Orbit launch from Cornwall in 2023 exposed the fragility of the UK’s horizontal launch bet.
Meanwhile, UK-India free trade talks — stalled since 2024 — include a services chapter that could ease cross-border space collaboration. A bilateral space agreement signed in 2023 has yet to yield a single joint mission. “We have the engineering talent in Leicester and Glasgow,” said a UK Space Agency source. “What we lack is the scale of risk capital India is now mobilising.”
Geopolitical currents add complexity
The boom coincides with shifting alliances. The US is pressing Reliance Industries to refine more Venezuelan crude, per Bloomberg, signalling Washington’s comfort with New Delhi’s strategic autonomy. At the same time, SpaceX’s earnings surge — and Elon Musk’s floating of a SpaceX-Tesla merger — shows US private space dominance hardening. India’s startups offer a non-aligned alternative for nations wary of single-vendor lock-in.
For British small businesses — especially those in downstream applications like agritech, logistics and flood mapping — Indian satellite constellations could soon provide cheaper, more frequent data than incumbent European providers. But only if UK regulators recognise Indian licences and data standards without duplication.
The next launch window isn’t years away. It’s this quarter. The question is whether Whitehall treats India’s space rise as a partner or a competitor.