Beyond ISRO: India’s Space Sector Hits A $44 Billion Turning Point

By Manish Pant

What?

When Dr Subba Rao Pavuluri resigned from his senior post as a division head at the ISRO, the move was considered bold and unconventional. At the time, India’s space sector was a closed shop and an exclusive domain of the state.  

Pavuluri founded Ananth Technologies Ltd (ATL) in Hyderabad nearly three decades before the Indian government would formally invite private players to the table. Today, the septuagenarian is regarded as the grandfather of India’s spacetech startup ecosystem, a man who lived through the evolution of a sector that has suddenly found itself at a historic inflexion point.

“From secure communications and navigation to climate systems, launch infrastructure and disaster resilience, every layer of our national architecture now depends on space assets,” Pavuluri, chairman & managing director at ATL, told The Core on a recent afternoon in New Delhi. For someone who has lived the evolution of India’s space economy, the septuagenarian’s words carry a lot of weight.

“Granting space the status of critical infrastructure and decisively expanding public investment is essential if we are to match our strategic aspirations and secure our leadership in the Indo-Pacific,” Pavuluri added.

His remarks come at a time of both triumph and turbulence for India’s space sector. Just last December, India celebrated the resounding success of ISRO’s Launch Vehicle Mark-III (LVM3)-M6 mission, which hauled the world’s heaviest telecommunications satellite — the 6.1-tonne BlueBird Block-2 — into the sky. 

The celebratory mood was, however, dampened in January when the Polar Satellite Launch Vehicle (PSLV)-C62 launch ended in failure. The rocket was carrying the Anvesha (EOS-N1) spy satellite, a critical piece of hardware designed for strategic surveillance.

The varying outcomes of the two missions highlight the growing importance of the sector to the world’s fourth-largest economy. 

Why?

Since its founding in 1969, ISRO has been India’s single space giant, though it has created a robust ecosystem of 400 private companies to supply components and fabrication. Companies like Godrej & Boyce, Larsen & Toubro and Tata Consulting Engineers, besides Pavuluri’s ATL, have played an invisible yet integral role in India’s space missions. State-owned players in the sector include names such as Bharat Electronics Ltd, Bharat Heavy Electricals Ltd, Electronics Corp. of India Ltd, Hindustan Aeronautics Ltd, and Kerala State Electronics Development Corp. Ltd.  

The year 2020 changed the sector’s trajectory when India opened its space sector to private participation. 

Today, India boasts over 300 spacetech startups, the highest concentration in Asia. They are no longer content with being mere subcontractors. These companies are vying for a slice of a $450-billion global private space industry that is projected to hit $1 trillion by 2040.

Why It Matters 

India has set its sights on a $44 billion space economy by 2033, a massive leap from its current $8.4 billion valuation. But to get there, the industry is calling for a fundamental shift in how the state views the sector. 

Lt Gen (Retd) Anil Kumar Bhatt, Director General of the industry body, Indian Space Association (IsPA), believes that while private players are making strides, the government must remain the anchor customer.

“If geospatial or space data is mandated for planning and operations, it will significantly boost the sector,” Bhatt said. He, like Pavuluri, argues that the space sector must be categorised as critical infrastructure to ease access to financing.

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69.8 lakh

That’s how many foreign tourists came to India from January to October in 2025, versus 79.1 lakh the previous year. Gajendra Singh Shekhawat, the Minister of Tourism, presented these figures in a written reply to a question by Lok Sabha member VK Sreekandan.

Sreekandan asked why tourist arrivals fell despite a depreciation in the rupee, which typically makes a destination cheaper for foreign visitors. Shekhawat responded that while a weaker rupee should support tourism, other factors continue to influence travel decisions. These include ease of visa norms, safety and security conditions, promotional and marketing efforts, and the broader foreign policy environment.

Flashpoint: Previously, Shekhawat has pointed to the fall in arrivals from key source markets such as Bangladesh, along with other country-specific travel trends, as contributors to the decline.

Backdrop: The slowdown predates the latest numbers. Even in 2024, India recorded far fewer foreign visitors than its pre-pandemic peak of nearly 110 lakh in 2019, suggesting the tourism sector has struggled to regain its earlier momentum.

Farmers Oppose US Trade Deal

Indian farm unions and opposition parties have accused the government of endangering the farm sector through the new India–US trade framework, alleging it favours heavily subsidised American agriculture over vulnerable Indian farmers, Reuters reported.

Lead: They say the lack of detailed disclosures on product lists and tariff lines has heightened fears that India could become a dumping ground for US farm goods. Farmer leaders argue that US producers benefit from larger landholdings, stronger subsidies and better infrastructure, while Indian farmers struggle with rising input costs and weak processing systems.

What's Next? Groups such as the Samyukt Kisan Morcha warn that lower duties on items like crude soyoil and apples could depress domestic prices, hurt oilseed and horticulture growers, and squeeze rural incomes, prompting nationwide protests.

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