Spacetech eyes liftoff in new year after proof-driven 2025

THE SPACETECH STARTUP ecosystem is entering 2026 with a stronger operating base after a year in which policy intent translated into execution and early promise gave way to proof.

- S SHANTHI

Founders and investors expect the coming year to be defined less by experimentation and more by scale, revenue visibility and long-term contracts, building on gains made in 2025.

The past year marked a shift in the government’s engagement with private players, with contracts issued for operational programmes, procurements and technology transfers. Initiatives such as IN-SPACe’s ₹500-crore Technology Adoption Fund, which can cover up to 60% of project costs, helped narrow the gap between prototypes and commercial deployment in a capital-intensive, long-cycle sector. Equally significant was the widening of access for private firms to government programmes, including through the Earth Observation public-private partnership framework and deeper collaboration with Isro. These allowed startups to build, own and operate space assets while serving national and commercial requirements.

Global demand also played a role. Rising appetite for earth observation and space-enabled intelligence created market pull, enabling startups to compete on capability and reliability rather than only on cost. Combined with policy support and improved capital access, this demand helped the sector mature over the past 12 months.