Washington, Aug 2026 : India’s share of the global space economy could increase nearly fivefold over the next five to seven years, driven by policy reforms, rapid growth in the private space sector and expanding commercial cooperation with the United States, according to the US Department of Commerce.
India currently accounts for less than 2 per cent of the global space market, but its share could reach around 10 per cent within the next five to seven years, the International Trade Administration (ITA) said in its August Aerospace and Defence Exporter Alert.
The US Commerce Department has designated India’s space sector as its “Market of the Month”, highlighting the country as an increasingly attractive destination for international space companies and investors. The assessment points to opportunities for US firms in areas ranging from satellite systems and connectivity to advanced spaceflight technologies, manufacturing and other emerging segments.
The ITA said India’s private space ecosystem was developing rapidly and that government measures aimed at opening up the sector to private participation could create significant opportunities for international companies.
India has been gradually transforming its space sector from one dominated by government institutions into a more commercially oriented ecosystem involving startups, private manufacturers and technology companies. The reforms are expected to encourage investment, innovation and greater participation by domestic and foreign players.
Deepening US-India Space Partnership
The United States and India have a long history of cooperation in space, dating back to 1963, when India launched its first rocket, a US-made Nike-Apache sounding rocket.
Since then, bilateral space cooperation has expanded through scientific exchanges, joint working groups and collaborative programmes. NASA and American companies have also provided technologies and components to the Indian Space Research Organisation (ISRO), contributing to the development of India's space capabilities.
The relationship is now entering a more commercially focused phase, with Indian space startups increasingly looking to establish operations and manufacturing capabilities in the United States. The US Commerce Department said this growing two-way engagement could create new opportunities for businesses in both countries.
In February 2026, the Business Council for International Understanding led a US commercial space mission to Bengaluru that was certified by the ITA. The department described the mission as successful and said it demonstrated the growing commercial potential of the bilateral space relationship.
“Space is a major area of US-India cooperation,” the department said, noting that the partnership offers benefits through commerce, technological development and joint policy initiatives.
Focus on Removing Business Barriers
Commercial cooperation between the two countries is being advanced through the US-India Civil Space Joint Working Group, while the TRUST initiative, launched in 2025, has further strengthened bilateral engagement.
A dedicated Commercial Space sub-working group, jointly led by the US Department of Commerce and India’s Department of Space, is working to address barriers faced by companies seeking to operate in each other’s markets.
Its agenda includes market access, government procurement, foreign direct investment and export controls. The two countries have also committed to deeper cooperation in space exploration, space safety and professional exchanges.
The February 2025 joint statement by the leaders of the United States and India called for expanded collaboration in these areas, providing a broader policy framework for commercial and technological engagement.
Bengaluru Space Expo to Offer New Opportunities
The US Commerce Department has encouraged American companies interested in entering the Indian market to participate in the Bengaluru Space Expo, scheduled for September 7-9.
The event is expected to bring together policymakers, industry leaders, technology companies and investors from India and abroad. It will provide companies with an opportunity to showcase capabilities, explore partnerships and identify opportunities in India's rapidly expanding space economy.
With India targeting greater private participation and stronger international partnerships, the US assessment suggests that the country's space sector could become a major contributor to the global space economy in the coming decade.
