Funding in India’s space sector has plummeted by 55% in 2024 to $59.1 million from $130.2 million the previous year
According to data from market intelligence platform Tracxn, funding in India’s space sector experienced a significant decline of 55% in 2024, reaching $59.1 million. This drop is particularly noteworthy given that it marks the first decrease in at least five years.
Global Decline in Space Sector Investment
The global trend shows a 20% decline in space sector investment, with companies raising about $28 billion over the last five years. In contrast, Indian space startups secured approximately $354 million during the same period, as per Tracxn data.
India’s Ambitions to Become a Global Superpower
The drop in funding for India’s space sector comes amidst the country’s ambitious plans to become a global superpower. The sector has gained significant attention with notable achievements like the Chandrayaan-3 lunar landing and the Aditya-L1 solar probe launch.
Private Space Economy Growth Crucial for India
India’s private space sector is seen as essential in achieving the long-term goal of creating a $44 billion private space economy. To stimulate growth, the government has approved a 10 billion rupee ($119 million) fund to support space startups and plans to expand India’s share of the global commercial space market by 2033.
Industry Participants Optimistic About Future Funding
Despite the decline in funding, industry participants are confident that investment will pick up in the coming months. "The next 12 months will be crucial in shaping the future of India’s space tech startups," said Vishesh Rajaram, managing partner at Speciale Invest, which backs companies such as Agnikul Cosmos, GalaxEye, and Inspecity.
Funding Cycles in the Space Industry
The decline in funding is seen by industry experts as a natural part of the investment cycle. "The decline aligns with the natural investment cycles of the industry," said Pawan Chandana, founder of Skyroot Aerospace. "As leading companies approach critical milestones in 2025, investment activity is likely to pick up."
Five-Year Funding Trend for Indian Space Startups
Over the five years from 2020 to 2024, Indian space startups raised $353.5 million across 72 funding rounds.
ISRO’s Projected Budget Increase
The Indian Space Research Organisation (ISRO) has projected a 20%-30% increase in its budget to support deep space exploration and heavy-lift rockets. This indicates that the government is committed to supporting the growth of India’s space sector.
Conclusion
The decline in funding for India’s space sector may be seen as a setback, but industry participants are optimistic about the future. With initiatives like the 10 billion rupee fund and plans to expand India’s share of the global commercial space market, the sector is expected to see a pickup in investment activity in the coming months.
Timeline of Funding for Indian Space Startups
| Year | Funding Amount (in million) |
| — | — |
| 2020 | $64.1 million |
| 2021 | $74.5 million |
| 2022 | $81.9 million |
| 2023 | $130.2 million |
| 2024 | $59.1 million |
Sources:
- Tracxn data
- Government initiatives and plans
- Industry expert opinions
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