A software glitch five minutes before lift-off briefly threatened what would become a landmark achievement for India’s private space sector. Inside Skyroot Aerospace’s Infinity Campus in Hyderabad, engineers rushed between consoles after an unexpected hold interrupted the countdown to Vikram-1’s maiden launch, creating tension across the company and the wider Indian space community, Business Today reported.

The moment resonated particularly with Agnikul Cosmos Co-founder and CEO Srinath Ravichandran, who watched from Chennai and recalled his own company’s aborted launch attempts at T-129 seconds and T-11 seconds.

The pressure was amplified because the same Sriharikota launch complex had witnessed two PSLV failures within 14 months, including PSLV-C61 in May 2025 and PSLV-C62 in January 2026, both linked to Stage-III anomalies.

After the software issue was corrected, the countdown restarted from T-20. Vikram-1 lifted off successfully at 12:05 pm. Mission controllers remained cautious until critical flight milestones were achieved, including stage separation and second-stage ignition. Once these events occurred successfully, it became clear that the mission was progressing as intended.

Vikram-1 became the first privately developed Indian orbital launch vehicle to reach orbit from Indian soil. The accomplishment placed India alongside the United States and China as nations possessing private-sector orbital launch capability, with Germany later joining the group following Isar Aerospace’s successful Spectrum launch from Norway.

The success demonstrated that India’s private companies could translate decades of ISRO expertise into independently developed space hardware. The achievement rested on foundations built over more than six decades by the Indian Space Research Organisation, which evolved from the Indian National Committee for Space Research established in 1962 and formally became ISRO in 1969.

Over the years, ISRO developed launch vehicles, satellites and deep-space missions while creating an industrial network of more than 500 suppliers concentrated around Bangalore, Hyderabad, Ahmedabad, Thiruvananthapuram and Sriharikota. According to ISRO estimates, approximately 80-85% of launch vehicle inputs come from this supplier ecosystem.

Most suppliers operated under a build-to-print model, manufacturing components to ISRO specifications. While this created world-class manufacturing discipline, it did not necessarily generate expertise in mission architecture, advanced software, complex systems engineering or original technology development. As a result, new spacetech firms had to determine which capabilities could be inherited and which needed to be developed independently.

For companies such as Dhruva Space, India’s industrial base offered significant manufacturing advantages. Founder Sanjay Nekkanti argued that many of the essential ingredients for a thriving space industry already existed.

However, manufacturing capability alone was insufficient. Designing systems, integrating technologies and managing complete missions required specialised knowledge and experience.

That expertise often came directly from ISRO veterans. Many former scientists and engineers joined Start-Ups as founders, advisors and executives. Skyroot founders Pawan Kumar Chandana and Naga Bharath Daka are prominent examples. According to Ravichandran, many senior scientists brought the same resourceful culture that characterised ISRO in the era of APJ Abdul Kalam.

ISRO’s credibility also helped younger companies gain international trust. Pixxel founder Awais Ahmed noted that overseas customers viewed Indian firms more seriously because of ISRO’s global reputation and because many private companies worked closely with former ISRO scientists. Most importantly, India already possessed proven experience in building spacecraft and reaching orbit, giving Start-Ups a significant advantage.

A major limitation remained until 2020 because private entities had only restricted opportunities to own independent space missions. This changed when the government announced sectoral reforms under the Atmanirbhar Bharat initiative and established IN-SPACe. Shortly afterwards, the Union Cabinet approved reforms allowing private companies to design, build, own and operate rockets, satellites, launch systems and associated infrastructure.

The Indian Space Policy 2023 formally institutionalised these changes, while liberalised foreign direct investment rules introduced in 2024 allowed up to 100% foreign investment in several space segments. These measures triggered rapid expansion, with active space Start-Ups increasing from only a few dozen in 2020 to roughly 440 by 2026.

New companies emerged across nearly every segment of the space economy. Skyroot, Agnikul and Astrophel focused on launch vehicles. Bellatrix developed propulsion systems. Dhruva Space concentrated on satellites and ground infrastructure.

Pixxel built hyperspectral imaging systems. EON Space Labs specialised in electro-optical payloads, GalaxEye worked on combined optical and radar sensing, Digantara pursued space situational awareness, and Abyom SpaceTech & Defence developed reusable launch technologies and dual-use systems.

The economic opportunity is considerable. India currently operates just over 50 satellites, compared with more than 11,000 active spacecraft in the United States and more than 1,000 in China. Venture Intelligence data shows Indian spacetech investment rising from around $10 million across four deals in 2020 to approximately $275 million across 37 deals in 2025 and about $349 million across 31 deals by September 2026.

IN-SPACe aims to expand India’s space economy from about $8.4 billion to $44 billion by 2033, while the global space economy could grow from roughly $630 billion in 2023 to around $1.8 trillion by 2035.

The experience of Azista Space illustrates this transformation. Established in Hyderabad in 2014 as a manufacturer of organic foods and pharmaceuticals, the company later entered aerospace manufacturing and became an ISRO subcontractor.

Strict requirements for quality control, traceability, environmental testing, cleanroom procedures and reliability engineering eventually encouraged the company to move beyond contract manufacturing and create products for international markets.

Despite strong foundations, important gaps remain. Companies such as Astrophel continue importing specialised components, while firms like Bellatrix, Abyom, EON and Digantara have had to develop significant indigenous expertise because many required technologies did not previously exist within India.

The supplier base, talent pool, infrastructure and credibility inherited from ISRO have accelerated progress, but proprietary technologies, advanced supply chains and global-scale competitiveness must still be built. Vikram-1 proved that India’s private sector can reach orbit; the next challenge is establishing itself as a globally competitive force across the broader space economy.

Agencies