India's space economy is set for a major leap from $13 billion today to $40 billion by 2030. This is according to the India Spacetech-2026 report by venture capital firm Arkam Ventures. The report titled ‘India’s Space Odyssey’ says the sector will grow twice as fast as the global space market. India is on track to become the world’s third-largest space-tech economy by 2030. The growth will come from India’s cost-efficient engineering, strong manufacturing, and a fresh wave of startups making advanced space tech for clients worldwide. More than 300 space-tech startups have appeared in the last five years in areas like satellite building, earth observation, launch vehicles, and in-space solutions. The report states, “More than two-thirds of the historical capital flows in the Indian spacetech sector have come in the last 5 years, post the space policy being formulated. We expect $3-$5 Bn of private capital flows in the sector over the next couple of years to fund cutting edge space innovations.” This surge builds on ISRO’s legacy of low-cost and impactful missions, plus its help for private innovation. The report adds, “Its frugal engineering philosophy has shaped how startups design, test, and deliver products. Access to ISRO facilities and technology transfers has helped reduce time and cost to market.” Startup founders, often ISRO alumni or graduates from institutes like BITS and IIT Madras, supported by over 25,000 new engineers a year, are driving this growth fast. Arkam Ventures predicts five Indian companies will enter the world’s top 10 space-tech firms soon. Rahul Chandra, Managing Director of Arkam Ventures, said, “India is uniquely positioned to lead the global spacetech sector fuelled by the unique ecosystem development role played by ISRO and the support from the Government. Over the next five years, we expect $3-$3.5 Bn of VC and Private Equity investments in the sector. We foresee 5 Indian startups feature among the world’s top 10 companies in vehicle launch, situational awareness, earth observation satellite manufacturing, and space debris handling.” By 2030, Indian private players are expected to conduct 40 to 45 launches yearly for global customers, produce one-third of the world's Earth Observation Satellites, and become key exporters of avionics, GNSS, SATCOM, and ground RF systems. The report was unveiled by aerospace scientist B.N. Suresh, former Director of Vikram Sarabhai Space Centre, at the Arkam Spacetech Meetup in Bengaluru on January 23, 2026.