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A new study reveals that satellite launch costs in India are the highest among key markets. Government sources challenge this perception, highlighting the advantages of subsidies and strategic savings. To support the growth of private sector space ventures
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India’s satellite launch cost 4 times higher than US
A new study reveals that satellite launch costs in India are the highest among key markets. Government sources challenge this perception, highlighting the advantages of subsidies and strategic savings. To support the growth of private sector space ventures, various funding schemes are being implemented, with expectations of a sharp decrease in launch fees in the near future.
India has the highest satellite launch cost among major spacefaring markets, with the cost of putting a kilogram of payload into orbit from the country estimated at more than four times that of the US, according to a 2026 study by researchers at the University of Cambridge and Politecnico di Torino, reported TOI.
The findings, however, have been disputed by a senior source in the Department of Space, who said the study does not account for subsidies offered to satellite customers in India, as well as savings on logistics, transportation and orbital manoeuvring.
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The peer-reviewed study, published in the Elsevier journal Economics Letters, was authored by Alessio Terzi of the University of Cambridge and Francesco Nicoli of Politecnico di Torino, Turin. It draws on a database covering thousands of rocket launches between 1960 and 2025 across 16 geographical entities, including the US, Russia, China, India, Europe and Japan.
The database includes more than 330 rocket configurations and 4,405 launches, according to the study.
India’s launch costs among the highest
The research estimates that, at the end of 2025, launching a satellite from India cost $13,302, or about Rs 12.7 lakh, per kilogram using rockets available in the country.The study placed India above the European Union, Russia, China and Japan in terms of launch costs.
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Space department questions methodology
A highly placed source in the Department of Space told TOI that the study does not take into account several factors that reduce the effective cost of launching satellites from India.The source said Isro's commercial arm, NewSpace India Ltd (NSIL), provides subsidies to satellite customers.
“satellite customers 30% subsidy on cost of launches”.
The source also pointed to lower transportation and logistics expenses for Indian customers launching satellites from Sriharikota.
“Secondly, Indian customers save money in logistics and transport when launched from Sriharikota. Third foreign launchers normally send all satellites from one launcher to the same orbit, which leads to rise in launch cost as satellites piggyback on the primary payload have to be manoeuvred to their respective orbit,” the source said.
The distinction is important because the headline launch price may not reflect the final cost borne by a customer after government support and other operational savings are taken into account.
Government support can lower launch costs
The Department of Space and IN-SPACe have introduced financial support mechanisms aimed at lowering the cost of accessing India's space infrastructure for private companies.These include the Launch Services Price-support Scheme (LSPS) and the Price Support Scheme.
Under the Rs 800 crore LSPS, IN-SPACe provides financial assistance ranging from 30% to 100% for satellite launches and related space infrastructure.
The support includes up to 50% assistance for the use of Isro and Department of Space launch facilities. For small launch vehicles carrying payloads of up to 500 kg, the scheme provides a 30% subsidy on launch costs, capped at $3,000 per kg.
For payloads of up to 120 kg, the scheme provides up to 100% funding, capped at $13,000 per kg, for up to four missions.
The schemes are intended to reduce the financial barriers faced by Indian non-government entities seeking access to launch services and other space infrastructure.
Launch costs expected to fall sharply
The Cambridge study also forecasts a significant decline in the cost of sending payloads into orbit as launch technology develops and the space industry scales up.“The expense of launching cargo into space will plummet over the next few years, with the cost of reaching orbit forecast to more than halve between now and the end of the decade, and fall around 93% by 2040.
The cost of sending a kilogram of payload into low Earth orbit, an average of $3,868 last year, is set to fall more than 58% to just $1,569 by 2030, and could reach as little as 273 US dollars per kilo by 2040, the study suggests.”
The findings come as India seeks to expand its private space sector and increase its share of the global commercial launch and satellite market.
With inputs from TOI
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Source: EconomicTimes
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