India’s space journey: From sounding rockets to Chandrayaan-3, Mangalyaan and Gaganyaan

A Jefferies report says India has built end-to-end space capabilities over six decades—from sounding rockets to successful missions to the Moon and Mars—while maintaining a strong reputation for cost-efficient engineering.

The next stage of the journey is likely to be shaped by human spaceflight, deeper exploration, heavy-lift launch capability and a larger role for private companies. Policy reforms, including the Indian Space Policy 2023 and liberalised foreign investment norms, are also changing the sector from one led mainly by the government into a wider commercial ecosystem.

India’s space economy: From $9 bn to $1.5 trillion by 2047

India’s space economy is being rewired from a government-led programme into a commercial, investment-driven sector. According to the government data, the space economy stood at about USD 9 billion as of August 2026 and is projected to reach USD 40–45 billion over the next decade, with registered space start-ups rising from one in 2014 to around 440 by mid-2026 and private investment climbing from USD 100.5 million in 2021–22 to USD 618.5 million by March 31, 2026.

Policy reforms underpin this shift as the Indian Space Policy opened end-to-end private participation; IN-SPACe acts as the single-window regulator; and NSIL commercialises ISRO technologies and handles demand-driven launches. In February 2024, FDI rules were liberalised—up to 74% automatic for satellite manufacturing and operations, 49% automatic for launch vehicles and spaceports, and 100% automatic for manufacturing satellite and ground-segment components—to attract global capital and deepen the supply chain.

Looking ahead, the government aims to grow India’s space economy to USD 1.5 trillion by 2047. Key missions such as Gaganyaan, the Bharatiya Antariksh Station by 2035 and lunar sample-return missions, along with a growing private space sector, will support this goal.

The Beginning: INCOSPAR to ISRO

India’s organised space programme began in 1962 with the formation of the Indian National Committee for Space Research (INCOSPAR). The committee laid the groundwork for scientific research, atmospheric studies and sounding-rocket launches at a time when India had limited technological and financial resources.

In 1969, INCOSPAR evolved into the Indian Space Research Organisation (ISRO). The creation of ISRO gave India a dedicated institution to develop satellites, rockets and space applications suited to national needs. Its focus was not only on scientific prestige but also on practical uses of space technology for communications, broadcasting, weather forecasting, agriculture, mapping, disaster management and education.

Over time, India progressed from launching basic sounding rockets to designing satellite systems and launch vehicles at home. This gradual build-up allowed the country to develop capabilities across the full space value chain, including spacecraft development, launch services, Earth observation, communications, navigation, mission operations and deep-space exploration.

Aryabhata: India enters the satellite age

A major early milestone came in 1975, when India launched Aryabhata, its first indigenously developed satellite. The satellite was launched from the Soviet Union, but its development marked the beginning of India’s own satellite programme.

With Aryabhata, India became the 11th country in the world to place an indigenously developed satellite in orbit. The mission helped establish the technological base that later supported a large range of Indian satellites for broadcasting, telecommunications, meteorology, remote sensing and scientific research.

The early satellite programme was especially important because India viewed space as a developmental tool. Satellite applications were increasingly used to reach remote regions, improve forecasting and collect data for planning in agriculture, water resources, forests, urban development and disaster response.

PSLV: The rocket that built India’s launch reputation

India’s launch-vehicle programme made a major leap with the success of the Polar Satellite Launch Vehicle, or PSLV, in 1994. The PSLV became the workhorse of India’s space programme because of its reliability, cost competitiveness and ability to carry multiple satellites on a single mission.

According to the Jefferies report, PSLV has been central to India’s emergence as a credible global launch provider. It has supported several important national missions, including Chandrayaan-1, India’s first mission to the Moon, and Aditya-L1, the country’s solar-observation mission.

The rocket’s multiple-payload capability also gave India a commercial edge. It allowed ISRO to launch Indian spacecraft alongside satellites for overseas customers, helping build a track record in the international launch-services market. Between 2014 and 2026, ISRO successfully deployed around 400 satellites for global customers, underlining India’s growing commercial launch capability.

Moving beyond earth: The Moon and Mars missions

India’s first deep-space mission, Chandrayaan-1, was launched in 2008. It represented a major transition for the programme: India was no longer focusing only on Earth-orbiting satellites and launch services, but was moving into planetary exploration.

Chandrayaan-1 produced one of India’s most significant scientific achievements in space. The mission detected water molecules on the Moon, a finding that strengthened global scientific understanding of the lunar surface and helped establish India as a serious player in space science.

India followed this with the Mars Orbiter Mission, widely known as Mangalyaan, launched in 2013. The spacecraft entered Mars orbit in 2014, making India the first Asian nation to reach Mars and the first country to do so on its maiden attempt. The mission demonstrated long-distance navigation, deep-space communications and orbital-insertion capability—critical technologies for future interplanetary missions.

Another historic achievement came with Chandrayaan-3 in 2023. The mission achieved the world’s first successful soft landing in the Moon’s south-polar region, an area of major scientific interest because of the possibility of water ice and its relevance for future lunar exploration. The landing placed India among the select group of countries to achieve a controlled soft landing on the Moon.

Frugal engineering becomes India’s space signature

A key feature of India’s space programme has been its ability to achieve major outcomes at comparatively modest cost. The Jefferies report describes this as India’s strength in frugal engineering and cost-efficient exploration.

India’s space budget for 2026 was estimated at around $1.4 billion, far below the budgets of leading Western agencies. By comparison, NASA’s 2025 budget stood at around $25 billion, while the European Space Agency’s budget for calendar year 2025 was estimated at about $8.7 billion.

Mangalyaan is often cited as an example of India’s low-cost approach. The Mars Orbiter Mission had a reported total cost of around $74 million, compared with reported life-cycle costs of more than $671 million for NASA’s MAVEN Mars mission. Chandrayaan-3, meanwhile, achieved its historic south-pole-region landing for approximately $72 million.

The report notes that direct comparison of mission costs can be misleading because objectives, payloads, scientific requirements and mission complexity vary widely. However, it says ISRO has clearly differentiated itself through its ability to develop missions with disciplined budgets, compact teams, efficient engineering and tightly managed project timelines.

From PSLV to LVM3: Climbing the payload curve

India’s launch capability has expanded steadily from smaller rockets to vehicles capable of lifting heavier satellites and supporting more complex missions. The PSLV remains central to the programme because of its dependable performance and commercial utility, but India has also built more powerful launch systems.

The Geosynchronous Satellite Launch Vehicle (GSLV) was developed to carry heavier communications satellites into geostationary transfer orbit. A key achievement in the GSLV programme was the development of an indigenous cryogenic upper stage, a highly complex technology needed for launching heavier payloads.

India’s most powerful operational launcher is now the Launch Vehicle Mark-3, or LVM3. The rocket is designed to carry heavy communications satellites and support deep-space missions. It is also expected to play a key role in the upcoming Gaganyaan human-spaceflight programme.

The LVM3 represents a major progression in India’s payload capability. It provides the country with a stronger base for future human missions, advanced science missions, larger satellite deployments and potentially more ambitious international commercial launch opportunities.

Gaganyaan and the next space phase

India is now preparing for a new stage in its space programme, centred on human spaceflight, deeper planetary exploration and advanced space infrastructure. The most prominent programme in this phase is Gaganyaan, which aims to demonstrate India’s ability to send astronauts into space using indigenous systems.

A human-spaceflight programme requires capabilities beyond those used for satellite launches. These include human-rated launch vehicles, crew modules, life-support systems, astronaut training, recovery operations, mission safety and abort systems. The programme is therefore expected to strengthen India’s wider technological and industrial base.

India is also expected to pursue more advanced exploration and scientific missions, building on the experience of Chandrayaan, Mangalyaan and Aditya-L1. The broader goal is to move from isolated landmark missions towards sustained capability in human spaceflight, lunar exploration, solar science, deep-space research and space-based infrastructure.

Space Policy 2023: Opening the sector to private industry

India’s space sector was traditionally led by ISRO and government institutions. However, reforms are now bringing private companies into almost every part of the space value chain. The Indian Space Policy 2023 is the main framework guiding this transition.

The policy formally permits private participation in areas ranging from satellite manufacturing and launch vehicles to ground systems, data services, space applications and downstream analytics. Jefferies said the policy is designed not simply to open the sector to businesses but also to encourage technology innovation and international collaboration.

The policy also clarified the institutional structure of India’s commercial space ecosystem. It designated NewSpace India Limited (NSIL) as ISRO’s commercial arm, while giving the Indian National Space Promotion and Authorisation Centre (IN-SPACe) the role of a single-window authority for promoting and authorising private space activity.

This framework is important because private companies need clear rules, access to facilities, predictable approvals and a defined commercial pathway before investing heavily in space technologies.

IN-SPACe: The single-window space regulator

IN-SPACe functions as an autonomous agency responsible for promoting and authorising space activities in India. Its role is to provide a more predictable regulatory environment for private companies, including startups that are developing rockets, satellites, propulsion systems, Earth-observation platforms and space-data services.

The agency also acts as a bridge between private industry and ISRO. It can help companies access ISRO’s technical expertise, facilities and infrastructure, while streamlining approvals for commercial space missions and services.

The development of IN-SPACe reflects a shift in India’s approach. Rather than treating private companies only as suppliers to government programmes, the new framework encourages them to become independent developers, operators and service providers in national and international space markets.

NSIL: Commercialising ISRO’s space capabilities

NewSpace India Limited, or NSIL, serves as ISRO’s commercial arm. It is responsible for manufacturing and procuring space systems on commercial principles, expanding industry participation and taking Indian space products and services to the market.

NSIL’s areas of work include the productionisation of PSLV launches, transfer of small-satellite technologies, satellite services and marketing of ISRO-developed technologies and spin-off applications. It has enabled more than 70 technology-transfer agreements involving ISRO-developed technologies for industry.

The company has also launched 141 satellites for 138 international customers and three Indian customers, according to the report. This commercial role is expected to become more important as India looks to increase launch frequency, attract overseas customers and create a stronger domestic supply chain for satellite and launch technologies.

FDI reforms bring global capital into space

India has also liberalised its foreign direct investment rules to make the space sector more attractive to overseas investors. The revised framework allows different levels of foreign ownership across the space value chain under the automatic route.

Under the new policy, up to 74% foreign direct investment is permitted automatically in satellite manufacturing and satellite operations. In launch vehicles and spaceports, up to 49% FDI is allowed through the automatic route. The policy permits up to 100% foreign investment in the manufacturing of satellite components and sub-systems.

Investments beyond the specified limits require government approval. By replacing the earlier case-by-case approval system with defined thresholds, the new policy is expected to make it easier for international investors and companies to participate in India’s fast-growing space economy.

According to Jefferies, IN-SPACe facilitated approximately $150 million of investment in Indian space startups during calendar year 2025.

A space power with a commercial future

India’s journey since 1962 has been built through steady capability development rather than sudden leaps. It began with sounding rockets and scientific research, expanded through Aryabhata and the satellite programme, gained global launch credibility through PSLV, and entered the front rank of planetary exploration through Chandrayaan and Mangalyaan.

Today, India has developed indigenous capabilities across much of the space value chain and is preparing for its next major test: building a sustainable human-spaceflight programme while turning its government-led space system into a wider commercial industry.

Jefferies says India’s space story is now bigger than ISRO alone. It includes government agencies, private startups, global investors, commercial launches and ambitious exploration plans. From INCOSPAR’s launch in 1962 to the upcoming Gaganyaan era, space has grown into both a strategic priority and a major economic opportunity.