India’s space sector has faced a significant setback in 2024, with funding plummeting by 55% to $59.1 million, down from $130.2 million in the previous year, according to Tracxn data. This marks the first decline in five years, as the global space industry also experienced a 20% dip in investment. Over the past five years, space companies worldwide raised approximately $28 billion, while Indian firms garnered only $354 million during the same period.
Despite the drop in funding, India’s space ambitions remain strong, fueled by successful missions such as the Chandrayaan-3 lunar landing and the Aditya-L1 solar probe launch. The country’s growing private space sector is seen as a key player in realizing the $44 billion space economy goal. In response to the funding slump, the Indian government announced a 10 billion rupee ($119 million) fund in October 2024 to support space startups, signaling continued efforts to drive growth in the sector.
Industry insiders are optimistic about a rebound in 2025, expecting funding to rise as Indian startups approach critical milestones in satellite technology, launch vehicles, and space exploration. With over 100 space technology startups and 55 active space assets, India’s space industry remains poised for future growth. As the Indian Space Research Organisation (ISRO) looks to increase its budget by 20-30%, the space sector is expected to play an even larger role in the country’s long-term economic development.
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