BENGALURU: India was supposed to kick off its 2026 space calendar with a launch that quietly captured the direction the sector is now taking. However, PSLV-C62, which clearly bears the private sector imprint, failed on January 12. Despite that setback, 2026 is still shaping up to be the year when India’s private sector can show results in class.Just eight days after the PSLV mission, the country’s first Earth Observation Satellite System (EOSS) under PPP witnessed a significant milestone with the signing of a concession agreement, allowing the winning consortium to finally begin work on the ground, four months after winning the project from the Indian National Space Promotion and Authorization Center (IN-SPACE). The agreement was between IN-SPACe and Allied Orbits – a special purpose vehicle (SPV) created by a consortium of Pixel Space, Piersight Space, SatSure Analytics India and. Dhruv Location – East Office in Bengaluru.TOI had earlier reported in August 2025 that the Pixxel-led consortium had won the project through “zero-bidding”. While the concession agreement was to be signed within three months, it was signed on January 20 due to delays in procedures. The project will create a constellation of 12 satellites whose data will be used for applications ranging from climate change monitoring and disaster response to agriculture, infrastructure planning, maritime operations and national security. There are huge gaps as far as keeping an eye on the sky goes.The consortium will implement the project through Allied Orbits. “As part of the project, Piersight will build synthetic aperture radar (SAR) satellites, build Pixel hyperspectral and high resolution optical satellites, build SatSure multispectral satellites and develop Dhruv ground station,” PierceSight CEO and co-founder Gaurav Seth told TOI.Pixxel CEO Awais Ahmed told times of India That his firm was “implementing 60% of the project and investing the same amount.” “Of the 12 satellites, seven will come from Pixel, three from SatSure and two from PierceSight,” Awais said. He said Pixel will build two types of satellites: five of them will be ultra high-resolution submeter satellites and two will be hyperspectral satellites.Over the next four to five years, the consortium is expected to invest over Rs 1,200 crore to create a 12-satellite constellation in low-Earth orbit. The project is designed to enhance India’s data sovereignty and reduce dependence on foreign imagery. All satellites will be manufactured in India, launched on Indian rockets and controlled from ground infrastructure within the country.space-based surveillanceIn addition, the three private entities will also produce 31 satellites as part of the Space-Based Surveillance (SBS) program for India’s strategic needs to be used by national security agencies. This is the first time that private industry will develop a satellite for strategic needs. The current SBS program – which builds on earlier incarnations that saw satellites of the Cartosat and RISAT families – will further enhance India’s space surveillance capabilities and will see a total of 52 satellites in both geostationary orbit (GEO) and low Earth orbit (LEO). Twenty-one of these satellites will be developed by ISRO and the other 31 will come from the private sector. Overall, the estimated cost of the project is Rs 26,000 to Rs 27,000 crore – this is expected to be revised upwards.The latest iteration marks a significant upgrade over its predecessors, incorporating artificial intelligence to enable unprecedented satellite connectivity and intelligence gathering.A major innovation of the current SBS will be an integrated network of satellites located in both LEO and GEO. This dual layer system will allow dynamic cooperation between satellites, with GEO satellites at 36,000 km able to detect activities and LEO satellites at 400-600 km to direct and provide detailed observations.The program is expected to allocate dedicated satellites to support land, sea and air-based missions across India’s military services, enhancing the country’s defense capabilities. expandable housingAt a time when India’s aspirations for a permanent human presence in space are taking shape in the form of the Gaganyaan and Indian Space Station (BAS) programmes, Bengaluru start-up Akashlabdhi is working on an “expandable space habitat”.A prototype model of the habitat called ‘Space HAB’ is ready. The final version is being designed to accommodate six to 16 personnel and will have an innovative structure that promises better protection against orbital debris and radiation while boasting versatility.rocket startup progressApart from this single launch, the first large-scale realization of India’s private launch ambitions is expected in 2026.Skyroot Aerospace remains one of the most watched startups. In late 2025, the company unveiled its Vikram-I orbital rocket in Hyderabad along with its “Infinity Campus”, a facility designed to support parallel rocket design, manufacturing and testing.
In 2026, Skyroot aims to perform its first commercial orbital launch, placing small satellites into low-Earth orbit. The company has indicated an initial cadence of one launch every three months, with plans to increase to monthly missions by 2027. Revenue generation is expected to begin once regular commercial operations are established.The success would prove to be a turning point: India’s first privately built orbital rocket, launched from Indian soil, would carry paying customer payloads rather than experimental technology demonstrators.Chennai-based Agnikul Cosmos is taking a different approach. Its launch vehicles are built around modular architecture and a patented upper-stage design that can also serve as orbital payloads. Internally, the company is targeting monthly launches after the completion of its first orbital mission.
Agnikul’s emphasis is on adaptability and production efficiency, with engines and stages designed for rapid manufacturing and low per-mission costs, a potential advantage in the increasingly crowded global small-satellite launch market.space domain awareness Digantara works in an area that is gaining urgency around the world: space domain awareness and orbital intelligence.The company specializes in tracking resident space objects, including debris and active satellites, using its own spacecraft, ground networks and data platforms. In 2025, it launched its first commercial space surveillance satellite, SCOT.In 2026, Digantra plans to deploy at least eight more satellites, primarily through rideshare missions on vehicles such as SpaceX’s Transporter series. It is also close to the first operational ground-based telescope in India.
As low-Earth orbit becomes more crowded, such capabilities are becoming increasingly important not only for commercial operators but also for defense and civil authorities responsible for collision avoidance and orbital safety.propulsion and debrisBellatrix Aerospace has evolved from an initial focus on launch vehicles to a focus on propulsion systems and orbital transportation technologies. Its portfolio includes electric propulsion thrusters for small satellites and an orbital transfer vehicle capable of repositioning spacecraft after launch.Recently, both Bellatrix and Digantara have partnered with Japan’s Astroscale, a global leader in debris removal and orbital servicing. These collaborations reflect how Indian hardware startups are increasingly joining the international technology ecosystem.For satellite operators, such propulsion and servicing systems may be essential, enabling low-cost maneuvering, orbit changes, and mission life extension.EO to scale up India’s Earth Observation (EO) sector is also entering a new phase. IN-SPACe’s build-own-operate framework began transitioning to implementation in 2025, signaling a shift to commercialization of satellite infrastructure and data services. Under this pressure, Allied Orbits was formed. Separately, Pixxel has already put into orbit its first private batch of hyperspectral imaging satellites through its Firefly series to serve agriculture, environmental monitoring and resource analysis.
Other companies, including Satelize and Graha Space, are working on satellite manufacturing and data services, such as real-time geospatial video, that can serve both commercial users and strategic agencies.From ISRO to industryAt the launch stage, public-private partnership models are beginning to take concrete shape. The LVM-3 heavy-lift program is being expanded with deeper industry partnerships to support future commercial missions.The first PSLV, built by the HAL-L&T-led consortium, is expected to fly in early 2026, marking a milestone in the industrialization of India’s launch vehicle production.As part of broader privatization plans, progress is also expected on technology transfer agreements for small satellite launch vehicles (SSLV) and eventually PSLV manufacturing. On January 8, the Department of Space issued an EOI inviting industries to manufacture the first module of the proposed Indian Space Station (BAS).Together, these steps point to a deliberate shift from a research-focused model to a market-driven space economy.high public investmentIndustry associations argue that maintaining private momentum at scale will require strong public support. India’s public spending on space, at about 0.04% of GDP, is well below global norms, the Satcom Industry Association-India (SIA-India) said in three coordinated pre-Budget submissions prepared in collaboration with KPMG.It recommended a phased increase to a level closer to 0.12% seen in leading spacefaring nations, with anticipated support for launch capacity, satellite constellations, navigation systems and test infrastructure.Subba Rao Pavuluri, President, SIA-India, said: “From secure communications and navigation to climate systems, launch infrastructure and disaster resilience, every layer of our national architecture now depends on space assets. Granting critical infrastructure status to space and decisively expanding public investment is essential if we are to match our strategic aspirations and secure our leadership in the Indo-Pacific region.“The Indian Space Association (ISPA) echoed the sentiment of change. “Private space startups in India raised nearly $150 million during FY25, taking total funding to date to over $617 million… India’s space sector is moving strongly into the execution-led phase. While challenges remain in manufacturing scale, long-term capital access and assured demand, this year has set a clear foundation for continued growth, deeper industry participation and India’s growing role in the global space economy,” said Lt Gen (Retd) AK Bhatt, Director General, ISPA.comeback from failureOf the 15 satellites aboard PSLV-C62, 13 were from private industry, highlighting how commercial payloads are now becoming the norm rather than the exception on Indian launch vehicles. And Indian companies that had payloads and deployers on the rocket are also expected to return. Dhruv Space, whose Polar Access-1 (PA-1), a structured launch program that would have enabled 10 satellite deployments to serve multiple Indian states and international customers, was lost, will aim to return to orbit.
One of the most closely watched payloads on the mission was AULSAT, built by OrbitAid Aerospace. The satellite was designed to demonstrate a technology that would eventually allow the firm to perform full refueling in orbit, a capability that could change the way satellites are operated and maintained.Now, the company is considering launching both the target and chaser satellites simultaneously later this year.
