Rohan M. Ganapathy notes that India space industry domestic demand can support growth. With the government as an anchor customer, Indian space companies can scale and compete globally.
India’s space sector needs a larger domestic market to meet India space industry domestic demand. According to Bellatrix Aerospace CEO Rohan Ganapathy.
Ganapathy said the government can be an anchor customer for space companies to boost India space industry domestic demand.
India has around 400 space companies, but Ganapathy argued that the current level of domestic demand may not be enough to sustain all of them.
“If you don’t do anything,” he said, the industry could eventually consolidate to around 25 to 30 companies. Increasing domestic demand, however, could allow more companies to grow while also helping India become a supplier to global space businesses.
India Has an Opportunity in the Global Space Market
Ganapathy believes India has an opportunity to capture a significant share of the global space economy.
He said private Indian companies could potentially target 20% of the estimated $100 billion global space market, particularly across lower-orbit satellites, telecommunication and Earth observation.
He noted shifts could support the India space industry domestic demand, as customers may view India as an alternative supplier.
But reaching that opportunity will require a larger domestic customer base, he said.
The government could act as an anchor customer while Indian companies develop products, qualify their technologies and build the scale needed to compete internationally.
Spacetech Start-Ups Need to Grow the Market Together
Ganapathy also described India’s spacetech ecosystem as highly collaborative.
He cited companies such as Digantara and Pixxel, as well as Skyroot Aerospace and Agnikul Cosmos, saying their founders are building complementary capabilities rather than simply competing for the same market.
According to Ganapathy, the Indian space market remains too small for individual companies to carry the entire burden of developing the sector.
The broader ecosystem therefore needs to grow together, creating enough demand for multiple companies to develop sustainable businesses.
Why Domestic Demand Matters for Space Companies
Space companies face an unusual challenge compared with many other technology businesses.
A rocket or satellite can contain millions of components, and the failure of a single critical part can jeopardize an entire mission.
Companies therefore need extensive ground testing and qualification before putting hardware into space.
Ganapathy said this process requires companies to have enough capital to learn from failures and attempt missions again.
He pointed to SpaceX as an example, noting that Elon Musk’s company experienced three failed launches before its fourth attempt succeeded and was followed by a major NASA contract.
For Indian companies, stronger domestic procurement could provide the revenue and validation needed to survive this development cycle.
Bellatrix Raised $40 Million as the Sector Evolved
Ganapathy said Bellatrix has raised around $40 million so far, including approximately $20 million during 2026.
When Bellatrix began in 2015, private investment in India’s space sector was far more difficult.
The company received its first order from ISRO, worth around ₹1 crore, according to Ganapathy.
He said regulation was one of the biggest barriers at the time. India joined the Missile Technology Control Regime (MTCR) in 2016, after which some restrictions affecting access to space-related technologies changed.
Bellatrix later raised $3 million in a pre-Series A round in 2019 and another $8 million in 2022 for its space propulsion program.
Growth-Stage Funding Remains a Challenge
While Ganapathy believes seed and Series A funding has become easier for Indian spacetech companies, he said growth-stage capital remains a major gap.
Series B funding requires companies to demonstrate that their technology works and that customers are willing to pay for it.
He identified Skyroot, Agnikul, Bellatrix, Pixxel and Digantara as among the Indian spacetech companies that have reached the growth stage.
Bellatrix is also looking to expand its manufacturing capacity as it moves beyond propulsion into satellite platforms. The company has been reported to be exploring a Series B fundraising of up to $100 million.
Bellatrix Is Betting on Very Low Earth Orbit
A major part of Bellatrix’s next phase is its focus on Very Low Earth Orbit, or VLEO.
Traditional LEO satellites generally operate hundreds of kilometers above Earth. Bellatrix is developing technology for satellites operating much closer to the surface, around 150 to 250 kilometers.
The lower altitude creates significant engineering challenges because atmospheric drag is much stronger.
Bellatrix’s approach uses air-breathing electric propulsion, which captures particles from the upper atmosphere and converts them into plasma for propulsion. The company is developing this technology to allow satellites to remain operational despite the continuous drag.
Bellatrix has also partnered with companies including Bharat Electronics Limited and South Korea’s TelePIX on VLEO satellite technology.
VLEO Could Improve Imaging and Communication
Operating closer to Earth can provide advantages for certain satellite applications.
For Earth observation, the shorter distance can enable higher-resolution imaging. Lower altitude can also reduce communication latency.
Ganapathy said the combination could make VLEO attractive for applications ranging from Earth observation to communications.
He also argued that satellites operating at these altitudes could potentially use more commercial-grade components, reducing costs compared with conventional space-grade systems.
Bellatrix is targeting VLEO missions around the 200-kilometre range, where atmospheric drag remains one of the biggest technical challenges.
Bellatrix has a ₹700 Crore Order Book.
Ganapathy said Bellatrix has signed orders worth around ₹700 crore across propulsion and satellite businesses.
The majority of the company’s current business remains in propulsion, with around 80% of the order book coming from its first phase of operations.
The company has now started its second phase, focused on satellite systems.
Ganapathy said Bellatrix’s existing factories can produce around 200 propulsion systems a year, but the company needs additional facilities to manufacture larger satellites at scale.
Domestic Demand Could Determine India’s Next Space Phase
For Ganapathy, India’s space opportunity is not simply about building more rockets or satellites.
The bigger question is whether the country can create enough demand to support the companies developing those technologies.
Government procurement, private-sector adoption and international customers could collectively provide that demand. A stronger domestic market could also give Indian companies the revenue, testing opportunities and customer validation required to compete globally.
Bellatrix’s own expansion into satellite platforms and VLEO illustrates how Indian spacetech companies are moving beyond individual components toward larger space systems.
The next phase of India’s space story, Ganapathy suggests, will depend not only on how much technology the country can build, but also on how much of it the domestic market is ready to buy.
Source: Outlook
