In a groundbreaking development, seven Indian private companies have been chosen for a pioneering India-U.S. space and defence collaboration programme, offering them access to the world’s largest defence and space market. This initiative marks a significant step in strengthening bilateral ties between the two nations while bolstering India's growing private space and defence sectors.
The programme, launched under the India-U.S. Defense Acceleration Ecosystem in 2023, aims to foster innovation and collaboration by bridging the defence industries of both nations. Sources familiar with the matter revealed that the selected Indian companies include space imaging firm KaleidEO and rocket manufacturers EtherealX and Aadyah Space. These companies will work closely with the U.S. Defense Innovation Unit, the Department of Defense, and private defence leaders like Lockheed Martin, Northrop Grumman, and RTX.
The collaboration will enable the Indian firms to gain mentorship, paid clientele, and opportunities to develop cutting-edge satellite observation and emerging space technologies. In return, they will compete in a niche U.S. market estimated at $1.5 billion annually, unlocking new revenue streams projected to range from $500 million to $1 billion annually.
“This partnership could be transformative for India's private space and defence industry as it seeks to reduce reliance on traditional partners like Russia and expand its global footprint,” a source stated.
The selection process was jointly overseen by Indian venture firm IndusBridge Ventures and U.S.-based FedTech, which launched a dedicated innovation platform in September 2024. Talks are underway to finalize specific projects for the selected companies.
The initiative coincides with recent high-level meetings between Indian National Security Advisor Ajit Doval and U.S. counterpart Jake Sullivan, where space technology collaboration and military solutions innovation were key discussion points. This collaboration is expected to accelerate the adoption of advanced commercial technologies for defence applications.
While official announcements from the government are pending, this development underscores the deepening India-U.S. partnership and highlights India's emergence as a key player in the global space and defence landscape.