India's Space Industry Funding Sees 55% Decline in 2024, Tracxn Data Reveals

Funding in India's space sector took a significant hit in 2024, dropping by 55% to US$59.1 million from US$130.2 million the previous year, as per insights from market intelligence platform Tracxn. This decline, amidst a global 20% decrease in space sector investment, marks the first fall in at least five years. Globally, space companies amassed around $28 billion over the last five years, while Indian counterparts secured approximately US$354 million in the same period, according to Tracxn data.

India's space industry has been making waves internationally with milestones like the Chandrayaan-3 lunar landing and the Aditya-L1 solar probe launch. The growth of its private space sector is increasingly viewed as vital for achieving the long-term goal of a US$44 billion private space economy.

To boost the sector, the government sanctioned a 10 billion rupee (US$119 million) fund in October 2024 to support space startups and outlined plans to expand India's share of the global commercial space market by 2033. Industry insiders anticipate a resurgence in funding in 2025.

Vishesh Rajaram, managing partner at Speciale Invest, a firm supporting companies like Agnikul Cosmos, GalaxEye, and Inspecity, remarked, "The next 12 months will be crucial in shaping the future of India's space tech startups."

In 2023, India's space sector reached a funding peak of US$130.2 million, a 32.9% increase from 2022, driven by initiatives backing satellite technology, launch vehicles, and space exploration. Pawan Chandana, founder of Skyroot Aerospace, noted, "The decline aligns with the natural investment cycles of the industry. As leading companies approach critical milestones in 2025, investment activity is likely to pick up."

Over the five years from 2020 to 2024, Indian space startups raised US$353.5 million across 72 funding rounds. The Indian Space Research Organisation (ISRO) has also projected a 20%-30% increase in its budget to support deep space exploration and heavy-lift rockets.

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• India's space industry funding dropped by 55% in 2024 to $59.1 million.

• Globally, space companies raised $28 billion over the last five years, while Indian counterparts secured US$354 million.

• The government approved a $119 million fund in October 2024 to support space startups.

Source: REUTERS