India’s private sector, particularly in high-technology domains such as space and biotechnology, remains in a developing phase and requires more time and policy support to reach maturity, according to Dr. Jitendra Singh, Minister for Science, Space, and Atomic Energy. Speaking at a press conference on June 23, 2025, marking 11 years of the NDA government.

Several projects have been rolled out but we don’t have the private sector acumen, the Science, Space and Atomic Energy Minister says, adding that it will require some time and capacity building has started.

Dr. Singh emphasised that while significant progress has been made, the private sector still lacks the necessary acumen and experience to independently undertake complex projects such as manufacturing space vehicles or scaling biotechnology start-ups to the level required for public market interest.

Dr. Singh attributed this developmental lag to historical policy frameworks that did not sufficiently encourage robust private sector participation in strategic sectors. He noted that it was only in recent years, particularly under the leadership of Prime Minister Narendra Modi, that the government began to actively open up sectors like space to private enterprise.

This shift has led to the initiation of several projects and the gradual building of private sector capabilities, but Dr. Singh cautioned that developing the required expertise and confidence will take time.

The minister’s comments were prompted by questions regarding the recent awarding of a ₹511 crore Transfer of Technology (ToT) deal by the Indian Space Research Organisation (ISRO) to Hindustan Aeronautics Limited (HAL), a public sector company, for the manufacture and operation of Small Satellite Launch Vehicles (SSLVs).

Despite the government’s push for private sector involvement, no private company was ultimately selected for this contract. The bidding process included HAL, Alpha Design Technologies Ltd. (ADT, a subsidiary of the Adani Group) in consortium with Agnikul Cosmos and Walchand Industries, and Bharat Dynamics Ltd. in consortium with Skyroot Aerospace, Keltron, and BHEL. HAL emerged as the highest bidder, highlighting the current gap in private sector readiness for such advanced projects.

In the biotechnology sector, Dr. Rajesh Gokhale, Secretary of the Department of Biotechnology, addressed the challenges facing start-ups in reaching public markets. He explained that while the listing of a start-up on the stock exchange is a significant milestone, the current market equity of Indian biotech start-ups is around ₹7,000 crore, and these companies typically require longer incubation periods before they are ready for public investment.

The press conference, which also included Ajay Sumar Sood, Principal Scientific Adviser to the Government of India, and highlighted achievements across the Departments of Science and Technology, Biotechnology, Council of Scientific and Industrial Research (CSIR), and the Ministry of Earth Sciences, underscored the government’s commitment to fostering scientific innovation and private sector growth.

However, the officials acknowledged that sustained policy support, capacity building, and time are essential for the Indian private sector to fully realize its potential in high-technology fields.

Agencies