Financing for India's space industry fell by 55% for the first time in five years

Funding for the Indian space industry fell 55 per cent in 2024 from $130.2 million in 2023 to $59.1 million, the first decline in funding in the past five years, the data showed.

According to data from startup research firm Tracxn, global space companies have raised a total of about $28 billion over the past five years, while Indian space companies have raised about $354 million over the same period. The decline comes against a backdrop of a 20% drop in investment in the global space industry.

India's space industry has attracted global attention following the successful landing of the Chandrayaan-3 lunar probe and the successful launch of a rocket carrying the country's first solar probe, the Aditya-L1. The growth of India's private space sector is seen as key to achieving the long-term goal of a $4.4 billion private space economy.

To support the industry, the Indian government in October last year approved a fund of about $119 million aimed at supporting space start-ups and plans to expand India's share in the global commercial space market by 2033.

Despite the decline in funding, industry insiders expect it to pick up in 2025.

"The next 12 months will be critical for Indian space tech startups," said Vishesh Rajaram, managing partner at Indian venture capital firm Speciale Invest. In 2023, financing for the Indian space industry reached $130.2 million, up 32.9% from 2022, mainly due to the support of satellite technology, launch vehicles and space exploration projects.

"This decline is in line with the industry's natural investment cycle, with activity expected to pick up as major companies move towards key milestones in 2025," said Pawan Chandana, founder of Skyroot Aerospace, which focuses on developing small commercial rockets and space technologies in India.

From 2020 to 2024, Indian space startups have raised $353.5 million in 72 funding rounds. The Indian Space Research Organisation (ISRO) is expected to increase its budget by 20 to 30 per cent in the coming years to support deep space exploration and the development of heavy-lift launch vehicles.