India could significantly strengthen its position in the global space industry over the next several years, with its market share potentially climbing to 10%, according to the US Department of Commerce. The projection points to rapid growth in India’s private space sector, supported by regulatory changes, increased investment and deeper cooperation with the United States.
India currently represents less than 2% of the worldwide space market. However, the International Trade Administration, part of the US Department of Commerce, expects that figure to reach 10% within five to seven years. The agency featured India’s space industry as its “Market of the Month” in its August Aerospace and Defense Exporter Alert, identifying the country as an increasingly attractive destination for American businesses.
The report highlighted several areas where US companies could find opportunities, including satellite technology, spaceflight systems, telecommunications, manufacturing and other advanced aerospace solutions. As India encourages greater private participation in space activities, domestic companies are also looking beyond the country’s borders to expand their production and business operations.
The relationship between the two nations in space is not new. Cooperation dates back to 1963, when India launched its first rocket using a US-made Nike-Apache rocket. Over the decades, the partnership has broadened through scientific cooperation, technical exchanges, joint initiatives and collaborative programs. NASA and American companies have also contributed technology and components to the Indian Space Research Organization, or ISRO.
Recent developments suggest that commercial cooperation is gaining further momentum. In February 2026, the Business Council for International Understanding organized a US commercial space mission to Bengaluru that was certified by the International Trade Administration. The US Commerce Department described the mission as successful.
The two countries are also working through the US-India Civil Space Joint Working Group, while the TRUST initiative, launched in 2025, has added another layer to bilateral cooperation.
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 challenges affecting businesses. Its priorities include improving market access, procurement opportunities, foreign investment and export-control processes, potentially creating a stronger foundation for long-term commercial growth.
