ISRO’s reputation for executing complex space missions on remarkably low budgets has earned India global admiration and positioned the country as a competitive player in the international launch market.

The organisation’s frugal approach—rooted in simplifying systems, strict quality control, and maximising output from every resource—has enabled achievements such as the Mars Orbiter Mission (Mangalyaan) and Chandrayaan-3 at costs significantly lower than those of comparable missions by other space agencies.

However, as India’s ambitions in space grow and the global landscape becomes more competitive, this “low-budget hangover” is increasingly seen as unsustainable for the nation’s future plans.

One key challenge is that ISRO’s budget, while steadily increasing, remains a tiny fraction of India’s GDP—just 0.04%, compared to the US’s 0.28%. This chronic underfunding has led to repeated budget cuts and deferrals for flagship programs, including the Gaganyaan human spaceflight initiative and the joint ISRO-NASA mission to send an Indian astronaut to the International Space Station.

These cuts not only delay critical milestones but also raise concerns about the stability of international collaborations and the ability to maintain mission timelines. The Parliamentary Standing Committee on Science and Technology has repeatedly highlighted the risks posed by unpredictable financial allocations, emphasising that consistent and adequate funding is essential for long-term success.

Moreover, ISRO’s cost-effective model, while innovative, is increasingly at odds with the demands of next-generation space exploration. The organisation is now developing the Next Generation Launch Vehicle (NGLV), aimed at significantly boosting payload capacity and supporting fully reusable systems.

However, achieving these advanced capabilities requires substantial investment in research, technology, and infrastructure—areas where ISRO lags behind global giants like SpaceX and China, whose launch vehicles offer much greater payload capacities. Without increased funding, ISRO risks falling behind in the global space race, where strategic and economic dominance is increasingly tied to technological leadership.

The frugal approach also has limitations when it comes to risk-taking and innovation. While ISRO has a history of calculated risks, the organisation’s low-cost mindset can result in compromises on mission complexity, data collection, and technological advancement.

As space exploration expands into new frontiers—such as space mining, tourism, and interplanetary missions—the need for robust, cutting-edge technology and greater risk tolerance will only grow. ISRO’s current model may not be equipped to handle these challenges without a significant shift in funding and mindset.

Additionally, while ISRO’s low costs are partly driven by the country’s lower labour and operational expenses, this advantage is not guaranteed to last as India’s economy develops and living standards rise. The organisation’s ability to deliver “budget-friendly moonshots” is deeply tied to the broader economic context, and as wages and costs increase, maintaining the same level of frugality will become more difficult.

Privatisation and private investment in the space sector, as encouraged by recent policy changes, may help bridge some funding gaps, but ISRO itself will need to adapt to a new era of higher investment and greater ambition.

While ISRO’s low-budget approach has served India well in the past, it is not sustainable for the nation’s future space plans.

To remain competitive and achieve its ambitious goals, India must increase its investment in space technology, ensure stable and adequate funding for flagship programs, and foster a culture that balances frugality with the willingness to take calculated risks for excellence. Only then can ISRO chart new frontiers and secure India’s place as a leader in the global space economy.

IDN (With Agency Inputs)