India’s space sector is entering a significant new phase, with the Indian Space Research Organisation (ISRO) expected to gradually step away from the routine production of rockets and satellites. The move is part of a broader strategy to give private companies a larger role in building and operating space assets, while allowing ISRO to concentrate on research, innovation and advanced missions.
Dr Pawan Goenka, Chairman of the Indian National Space Promotion and Authorisation Centre (IN-SPACe), outlined the planned transition while speaking at Business Today’s India @ 100 Economy Summit. He said ISRO’s role would increasingly focus on developing cutting-edge technologies, conducting scientific missions and creating advanced space infrastructure rather than handling regular manufacturing.
According to Goenka, the production of launch vehicles will eventually be undertaken by private companies or public sector undertakings, marking a major shift in the way India’s space programme operates.
SSLV Technology Transfer Marks the Beginning
The transition has already started with the Small Satellite Launch Vehicle (SSLV). Its technology and production rights were transferred to Hindustan Aeronautics Limited (HAL) following a competitive bidding process.
The focus could now move to some of India’s most established launch vehicles, including the Polar Satellite Launch Vehicle (PSLV) and Launch Vehicle Mark-3 (LVM3).
Goenka indicated that production of these rockets is also likely to be opened up to private players. Unlike the SSLV process, however, public sector companies may not be allowed to participate in the upcoming exercise, potentially giving private industry a greater share of launch vehicle manufacturing.
ISRO to Focus More on Research and Innovation
The proposed restructuring could significantly redefine ISRO’s responsibilities. Instead of remaining directly involved in large-scale, routine manufacturing, the organisation is expected to operate more like a research and development institution.
Its future priorities are likely to include scientific space missions, specialised satellites, next-generation technologies and sophisticated infrastructure. Once technologies developed by ISRO become commercially viable, they can be handed over to private companies for large-scale production and commercial use.
Goenka said around 120 technologies developed by ISRO have already been transferred to private-sector companies, highlighting the growing connection between the space agency and industry.
Private Sector May Operate New Launch Facility
The government is also preparing to involve private industry in the operation of a new launch centre. According to Goenka, the selection of a private operator could take place within the next four to five months.
The move reflects the government’s broader effort to create a commercially driven space ecosystem in which private companies play a larger role across manufacturing, launches, satellite ownership and space-based services.
India Targets $44 Billion Space Economy
The restructuring comes as India sets an ambitious target for its space economy. The sector, currently valued at roughly $8 billion, is expected to expand to around $44 billion by 2033.
Goenka highlighted three major factors that could drive this growth: stronger government demand, wider use of space technology by industries beyond the traditional space sector, and greater expansion into international markets.
He also stressed the importance of the government acting as an anchor customer to create enough demand for emerging private space companies and encourage investment in the industry.
Defence Orders Could Boost Private Space Companies
Government demand is already beginning to support the expansion of private participation. The Department of Defence has placed an order for 31 satellites with private companies, while ISRO is expected to build another 21 satellites as part of the wider programme.
Such contracts could provide private space firms with the scale and confidence needed to expand manufacturing capabilities and develop new technologies.
Shift Towards Private Ownership of Space Assets
India is also moving towards a business model in which private companies can own satellites and other space assets. These companies would then be able to generate revenue by selling the data, communication capabilities and other services produced by those assets.
This ownership-based approach could open new opportunities in areas such as satellite communications, Earth observation, navigation, data services and other commercial applications of space technology.
A New Era for India’s Space Programme
The proposed changes signal a fundamental transformation in India’s space ecosystem. ISRO is expected to move away from routine rocket and satellite manufacturing and dedicate more resources to scientific exploration, advanced research, new technologies and strategic infrastructure.
At the same time, private companies are likely to become increasingly responsible for manufacturing launch vehicles, operating space infrastructure, owning satellites and delivering commercial services.
If implemented as planned, the new division of responsibilities could help India build a larger and more competitive space industry while allowing ISRO to focus on the high-end research and technological breakthroughs that will shape the country’s next generation of space missions.