Bengaluru Can Emerge as a Global Space Hub, But Manufacturing Gaps Remain

With about 200 Indian-based space startups, the majority of which are based in Bengaluru, the city is well-positioned to become a major global player in commercial space. 

These startups have created a growing ecosystem of companies working on satellite manufacturing, propulsion systems, and space-based data solutions. However, for long-term success, scaling beyond research and development into full-system integration and satellite manufacturing will be crucial.

Experts at the Invest Karnataka 2025 panel discussion on the ‘Future of Commercial Space’ highlighted the gaps that need to be addressed for the city to emerge as a global space hub.

Former ISRO chairman S. Somanath acknowledged Bengaluru’s leadership in space innovation but also pointed out that the city lags behind in producing a fully integrated communication satellite. 

“There are small satellite-building companies, but I hope to see a four-tonne or six-tonne class communication satellite built by an Indian company and launched from Bengaluru,” he said.

“We see startups focusing on components, but I have yet to see a fully integrated product emerging from Bengaluru.”

Despite the growth of the private sector, gaps in manufacturing continue to be a significant limitation. However, the panellists highlighted Bengaluru's potential to emerge as a major satellite hub. 

India is Expanding Global Collaborations

The Union Government has announced several initiatives to support private space companies, including a ₹1,000 crore venture capital fund to encourage investment in space startups. The fund is expected to boost investors' confidence, with ISRO backing commercial ventures in their early stages.

Husain Suterwala, a senior space policy advisor in the Office of the Secretary of Defense (OSD), noted that Indian startups have already secured contracts with the U.S. Space Force, highlighting their global competitiveness. 

“Several Indian startups have won U.S. contracts for Space Situational Awareness (SSA) and satellite imaging,” he said, mentioning companies like Digantara and Pixxel.

Notable space startups in the city include Bellatrix Aerospace, GalaxEye, KaleidEO, EtherealX, Aadyah Space, and SatSure, among others. 

Besides these, several space startups are spread throughout the country. For instance, Ahmedabad-based PierSight has been building the world’s first constellation of SAR+AIS satellites dedicated to ocean surveillance, and Hyderabad-based TakeMe2Space has been building India’s first AI lab in orbit. The founder of the startup told AIM that the startup also aims to launch two fully operational satellites this year to build in-orbit computing.

Meanwhile, Jay Gullish, executive director at the U.S.-India Business Council, pointed out that initiatives like Indus-X and I2A are fostering collaboration between Indian and American companies. These programs pair Indian startups with U.S. firms to co-develop and co-produce space technologies.

The discussion also touched on the importance of regulatory reforms to attract more foreign investment. Panellists emphasised that while India has liberalised foreign direct investment (FDI) in space, clearer regulations and streamlined processes are needed to boost private participation.

What’s Next for Bengaluru’s Space Ambitions?

While the city is leading India’s commercial space industry, experts say the next phase of growth will depend on investment in large-scale manufacturing, policy clarity, and stronger public-private collaboration. 

Somanath highlighted the need for state-backed infrastructure like space parks, similar to Software Technology Parks of India (STPI), to support hardware manufacturing and testing.