India is fast emerging as one of the world’s largest digital nations. Between April and June 2025, the country recorded over 1,002.85 million internet subscribers. The number shows how deeply internet access has spread.

Rural areas tell a different picture. Internet penetration in villages stands at just 46 users per 100 people. This gap has put the spotlight on satellite internet. It is now seen as the tool that can close the rural-urban divide.

Space Reforms Powering Private Entry

India’s satellite journey is linked to policy reforms. In 2020, the government allowed private firms to enter the space sector. The Indian Space Policy, 2023, then gave them a level playing field.

As a result, more than ten satellite operators are preparing to launch services in India. Among them is Starlink, which received its licence in June 2025. Jio Satellite and OneWeb have also secured approvals.

The move is backed by foreign investment rules. Up to 100% FDI is now permitted in the space sector. This is drawing global companies to India’s market.

Regulatory Support from DoT and TRAI

The Department of Telecommunications (DoT) is driving the licensing process. Under the Unified Licence framework, it is authorising satellite-based services such as VSAT and GMPCS. These services complement ground networks and extend coverage to underserved areas.

In May 2025, the Telecom Regulatory Authority of India (TRAI) issued new recommendations on satellite spectrum. It suggested that spectrum be allocated for five years, with an option to extend for two more. This shorter cycle is aimed at creating flexibility while ensuring efficient use.

The Role of NSIL and IN-SPACe

Two agencies are central to India's satellite ecosystem. The Indian National Space Promotion and Authorization Centre (IN-SPACE) acts as a channel between ISRO and private firms. It encourages, licenses and oversees non-governmental players, opening up space resources for wider use.

On the commercial side, New Space India Limited (NSIL), a public sector undertaking under the Department of Space, is expanding its fleet. It currently operates 15 communication satellites. Its demand-driven projects include GSAT-24 for DTH and GSAT-20 for broadband, with GSAT-23 set to launch in 2026.

From GEO to LEO and MEO

India is moving beyond its traditional geostationary satellites. The future lies in Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) systems.

LEO satellites, which orbit closer to Earth, provide low-latency, high-speed internet. MEO satellites, covering larger areas, offer reliable broadband with slightly higher latency. Together, they can deliver faster and more dependable services across remote regions.

Government Push for Rural Digital India

The government is running several schemes to strengthen connectivity in rural and remote areas. Digital Bharat Nidhi, earlier known as the Universal Service Obligation Fund, is supporting mobile towers and broadband expansion.

The BharatNet project is linking Gram Panchayats with high-speed broadband. Over 2.14 lakh villages are already connected. This includes coverage by BSNL and Bharat Broadband Network Limited (BBNL).

For island regions, bandwidth upgrades are in place. The Andaman and Nicobar Islands now enjoy 4 Gbps capacity, while Lakshadweep has reached 1.71 Gbps. In the North-East, more than 2,400 towers have been set up to serve villages and highways.

At the same time, the PM-WANI project is adding lakhs of Wi-Fi hotspots. By September 2025, over 3.7 lakh public hotspots were operational nationwide.

India’s push for satellite internet marks a turning point in its digital journey. With reforms, private entry, and next-generation satellites, the country is preparing for universal access. The shift from policy to ground action signals a clear aim: bridging the digital divide and powering growth under Viksit Bharat 2047.