PM Narendra Modi says successful launch will ‘encourage countless youngsters to dream bigger and innovate fearlessly’.

India has successfully tested its first private-sector orbital rocket, marking a milestone in New Delhi’s ambition to become a major player in the global space economy.

The three-stage 22-metre Vikram-1 was launched from the Satish Dhawan Space Centre in Sriharikota and deployed customer payloads into a 450km (280-mile) low-Earth orbit, making India the third country to achieve orbital launch capability through private enterprise.

Vikram-1 can carry a payload of up to 350kg (772lb) and is equipped with robotic arms that can clear space debris.

It also carried experimental equipment, a lab-grown diamond and a miniature 18-carat gold sculpture commemorating India’s national space programme.

India Prime Minister Narendra Modi hailed the achievement, saying that it will “encourage countless youngsters to dream bigger and innovate fearlessly”.

The test validated the rocket’s propulsion, avionics, telemetry, guidance, navigation and control systems during flight, according to manufacturer Skyroot Aerospace.

Founded in 2018, Skyroot is among a new generation of Indian space startups that have attracted backing from global investors following the sector’s liberalisation.

It became the first space-sector company in the ⁠country to hit a $1bn valuation earlier this year.

Skyroot celebrated the successful mission with a post on X stating: “Hello space, we have arrived!”

Vikram-1 improves upon Skyroot’s Vikram-S mission in 2022. That suborbital flight reached space but did not place payloads into orbit.

The company plans further test flights before starting routine commercial missions. It is another milestone for India’s burgeoning private and public space programmes.

India’s national space programme previously launched 104 satellites into orbit on one rocket in 2017, setting a record at the time.

Six years later, India became the fourth country in the world to complete a lunar landing when Chandrayaan-3 landed near the moon’s south pole.