India's space sector is undergoing a fundamental shift as a new generation of private deep-tech startups moves beyond manufacturing into core mission development, challenging decades of state dominance led by the Indian Space Research Organisation (ISRO). On 3 May 2026, Prime Minister Narendra Modi announced that Bengaluru-based startup GalaxEye had launched what it described as the world's first OptoSAR satellite, combining optical and radar imaging to observe Earth through cloud cover — a critical capability in tropical regions. Fellow Bengaluru startup Pixxel, which builds hyperspectral imaging satellites for agriculture, climate and defence applications, has also drawn global attention after securing a contract linked to the U.S. National Reconnaissance Office, signalling that Indian space startups are now competing at the highest international level. The shift has been underpinned by government policy reforms since 2020, including the creation of IN-SPACe (India's National Space Promotion and Authorization Center), which acts as a bridge between ISRO and private companies, as India aims to grow its share of the global space economy from roughly $8.4 billion today to $44 billion by 2033.