India’s space sector saw a significant decline in funding in 2024, dropping by 55% to $59.1 million from $130.2 million the previous year, according to market intelligence platform Tracxn. This decrease marks the first funding dip in the sector in at least five years and reflects a broader global trend, with space industry investments worldwide falling by 20%.
Despite the decline, India’s space industry has made substantial strides, with global recognition for achievements such as the Chandrayaan-3 lunar landing and the Aditya-L1 solar probe launch. The Indian government is actively supporting the sector, with a 10 billion rupee ($119 million) fund introduced in October 2024 to assist space startups, along with a vision to expand India’s share of the global commercial space market by 2033.
While 2024 funding levels have fallen, industry experts are optimistic about the future. Vishesh Rajaram, managing partner at Speciale Invest, which supports Indian space tech startups, noted that the next 12 months are crucial for the sector’s growth. Pawan Chandana, founder of Skyroot Aerospace, also emphasized that investment activity is likely to rise again as key companies approach important milestones in 2025.
The Indian Space Research Organisation (ISRO) has projected a 20%-30% budget increase to further support deep space exploration and the development of heavy-lift rockets.