What India Can Learn From Europe’s Space Ecosystem

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The opinions expressed here are personal observations. They are not intended as definitive facts, nor are they meant to discredit or hurt any individual, organization, or effort within the industry.

When my co-founder Vinit and I travelled across Europe recently, one theme stood out: the space industry there isn’t trying to do everything. Instead, it’s deliberately modular, with each company doing one thing - and doing it exceptionally well.

This kind of specialization - across components, subsystems, and adjacent services - is the backbone of Europe’s space ecosystem. And it's a model India can learn from, especially now that our own private space sector is finding its footing.

The European Approach: Specialised, Lean and Profitable

In Europe, you’ll find companies that exclusively build solar panels. Or that focus solely on avionics like radios. Or on specific subsystems like batteries or propulsion units. Most of these are lean, founder-led businesses. Some have fewer than 20 people. They aren’t venture-funded or hyper-scaled, but they clock steady revenues in the $1–10 million range.

They aren’t flashy. But they are profitable, resilient, and often booked out years in advance - simply because they've built trust and flight heritage in one focused domain.

But Europe didn’t get here by accident. Agencies like European Space Agency (ESA) played a critical role by distributing contracts across a network of highly specialized players.

For example, one of the companies we visited manufactures structural panels and has been a key vendor for ESA missions. That’s all they do. And they’ve built a robust, defensible business around it.

The Indian Ecosystem: Moving From Build-to-Print to Build-to-Design

In the Indian ecosystem, there's a budding layer of subsystem players - many of whom are currently operating in a “build-to-print” mode. But now, we’re beginning to see a shift. More and more startups are moving toward a “build-to-design” approach, where they create and own their own designs and technologies.

This is a necessary evolution.

Take Manastu Space, for example, building propulsion systems, or Dhruva Space offering satellite platforms and ground station services. But we need more players like them - each picking a narrow, hard problem, and solving it at depth.

And the opportunity here isn’t just technical. It’s also deeply commercial. You could build a multi-million-dollar business just by supplying star sensors, or space-grade connectors. The opportunity is wide open.

Our Own Search for Components

To ground this in reality: we’ve seen this firsthand.

As a company building space-based maritime surveillance, we’ve often found ourselves needing specific components - say, an ADCS system - and discovering that no one in India currently builds them to the required spec. That means we go abroad, paying in dollars, waiting weeks or months, and dealing with export control.

Each of these gaps represents a low-hanging fruit for local entrepreneurs and suppliers.

If you’re a hardware entrepreneur looking for your next idea - this is your goldmine.

The Next Big Opportunity in India

I strongly believe that the next wave in India’s space sector will come from subsystem and component manufacturers.

The good news is that policymakers are starting to recognize this. For instance, IN-SPACe has launched the Technology Adoption Fund (TAF) - a clever revenue-based financing scheme. It supports companies developing new technologies by offering non-dilutive capital. The model is simple: show that your subsystem (say, a novel radio or ADCS unit) has market demand, get funding to build it, and pay it back gradually as a small percentage of your future revenue.

This is a strong signal that even the regulators understand that while we have enough startups building satellites and constellations, what we now need is a solid support ecosystem - those who supply the parts, not just the final product.

We’ll also see the rise of enablers in adjacent services—companies that build containers for satellite transport, provide insurance cover for satellites, or handle launch logistics. In Europe, firms like Exolaunch and Impulso Space fill these roles. India is getting there too, and fast.

The Pitfall of Vertical Integration

India’s private space sector is still nascent. Most companies were formed only after the government opened the sector to private participation. It’s no surprise, then, that many are starting with satellite operations, where there’s immediate visibility and demand.

We’re also beginning to see the subsystem ecosystem take shape. But vertical integration remains common, and for two understandable reasons: one, it helps bring down the unit economics; two, it enables deep customization.

But here’s the trade-off: you end up competing with your potential collaborators. If you build both the solar panels and the satellite bus, you’re no longer a neutral supplier - you're now a competitor.

This deters trust and weakens the supply chain. A modular ecosystem, on the other hand, fosters collaboration - where companies can focus on excelling in their niche and become trusted suppliers across the industry.

Looking Ahead

India is also investing heavily in foundational tech like semiconductors, a domain we’ve traditionally been import-reliant on. Gujarat, for example, is poised to host multiple semiconductor labs, which could eventually feed into the space supply chain. In the next 5–10 years, I see India developing a more complete and modular space ecosystem - one where any startup looking to build a satellite doesn’t have to reinvent the wheel but can source everything from trusted local vendors.

My biggest takeaway from Europe is this: maturity in an ecosystem comes not just from ambition but from specialization and collaboration.

India is heading there. The momentum is building. And we have every reason to be optimistic.