GSLV-F16 rocket carried the $1.3-billion NISAR satellite into a precise orbit

The Cost Competitiveness Crisis

Indian space companies Pixxel and Dhruva Space recently made headlines by choosing SpaceX over ISRO for launching their satellites, highlighting a fundamental shift in the global commercial launch market. The core issue lies in cost competitiveness per kilogram to orbit.

While ISRO's missions are often lauded as cheaper than Hollywood films, this comparison fails to capture the commercial reality where SpaceX's per-kilogram costs are estimated to be less than half of ISRO's charges. Industry analysts suggest that ISRO's baseline cost is four to five times that of SpaceX, making the American company significantly more attractive for commercial customers.

SpaceX's reusable rocket technology has fundamentally transformed launch economics. Their Falcon 9 booster can be reused within 21 days and has demonstrated the ability to fly up to 23 times. This reusability enables cost reductions of up to 70% compared to disposable rockets, with SpaceX advertising launch costs around $67 million per flight while their marginal cost for reused boosters could be as low as $30 million. In contrast, ISRO's rockets remain expendable, requiring complete reconstruction for each mission.

Launch Frequency: The Critical Bottleneck

The most glaring disparity between ISRO and SpaceX lies in launch frequency. Prime Minister Modi recently acknowledged that India conducts barely 5-6 rocket launches annually and set an ambitious target of 50 launches per year by 2030. Meanwhile, SpaceX has completed 134 launches in 2024 alone and has already launched its Falcon 9 more than 100 times in 2025. This stark difference means commercial customers face significantly longer wait times with ISRO.

ISRO's sluggish launch pace has real consequences for its commercial viability. In eight months of 2025, ISRO conducted only three launches, compared to the United States' 120 launches, China's 49, and Russia's 11. For satellite companies with time-sensitive missions and debt-financed projects, waiting for the next available ISRO slot can cost more than paying premium prices for faster SpaceX services.

Why Indian Firms Prefer Musk’s SpaceX Over ISRO For Satellite Launches

In recent years, Indian private companies have increasingly leaned toward SpaceX for satellite launches rather than relying on the Indian Space Research Organisation (ISRO). While the firms themselves have not publicly disclosed the exact reasons, a deeper examination of the global launch market and ISRO’s current operational status reveals a number of decisive factors: cost-efficiency, reliability, frequent launch opportunities, and overall availability of rockets.

To begin with, SpaceX has rapidly established itself as a global leader in the commercial spaceflight sector. In 2024 alone, the company successfully completed 134 launches, maintaining a high tempo of operations. By mid-2025, its workhorse rocket, Falcon-9, had already flown more than 100 times, showcasing both technical reliability and operational scalability.

This unparalleled launch cadence ensures that satellites—whether from large governments or small start-ups—rarely face delays in deployment. As a result, customers worldwide, including Indian private satellite makers, find themselves gravitating toward SpaceX to avoid the operational uncertainties associated with waiting for infrequent launch slots elsewhere.

On the other hand, ISRO’s launch calendar has remained constrained. In recent years, the Indian space agency has conducted only five to seven launches annually. This relatively modest number is insufficient for meeting the growing commercial demand, particularly from small satellite operators and new-age space-tech ventures that depend on timely satellite placement for business viability.

Crucially, ISRO has not executed a single commercial launch in 2025 so far. Instead, its major mission of the year—the much-anticipated launch of the NASA-ISRO Synthetic Aperture Radar (NISAR) satellite in July—was a scientific partnership rather than a revenue-generating commercial service. Although ISRO did commit to launching BlueBird, a U.S.-based private satellite, that mission has now been delayed until early 2026. Such postponements reinforce a perception among customers that ISRO’s commercial services lack predictability.

Technical Limitations And Mission Failures

ISRO's technical constraints further compound its commercial challenges. The agency's heaviest launch vehicle, the LVM-3, can only carry 4,000 kg to Geosynchronous Transfer Orbit, forcing India to rely on SpaceX for heavier satellites like the 4,700 kg GSAT-N2. This payload limitation severely restricts ISRO's commercial market reach.

The situation worsened in May 2025 when ISRO's workhorse PSLV-C61 failed during its third stage, marking a rare failure for the otherwise reliable rocket. More concerning is ISRO's failure to publicly release the Failure Analysis Committee report, breaking with its tradition of transparency and potentially affecting international customer confidence.

The Transparency And Accountability Gap

Unlike previous mission failures where ISRO promptly released detailed failure analysis reports, the PSLV-C61 failure report remains undisclosed. This departure from transparency standards raises concerns among international clients who expect high levels of accountability from launch service providers. Commercial customers increasingly view this opacity as a risk factor when selecting launch providers.

ISRO's Struggling Commercial Performance

ISRO's commercial track record in 2025 has been particularly disappointing. The agency has not flown a single commercial mission in 2025, with even announced missions like the BlueBird satellite launch pushed to January-March 2026. This unreliability in scheduling makes ISRO an unattractive option for commercial customers operating under strict timelines.

The contrast is stark when considering that while ISRO managed only 7 launches in 15 months against a target of 30 (achieving just 23% of its launch target), SpaceX maintains a consistent high-frequency launch schedule that allows customers to book slots with confidence.

Market Dynamics And Customer Preferences

The global commercial space launch market operates similarly to the airline industry: frequent operators attract more customers. SpaceX's ability to offer multiple launch opportunities throughout the year, combined with its cost advantages and payload flexibility, creates a compelling value proposition. The company's ride-share model allows customers to split costs further, making space access even more affordable.

Indian companies like Pixxel and Dhruva Space have clearly recognised these market realities. Pixxel launched three Firefly hyper-spectral satellites via SpaceX, expanding their constellation to six satellites. Dhruva Space's LEAP-1 satellite represents their first commercial mission, featuring advanced AI and hyper-spectral payloads. These companies chose SpaceX not out of lack of patriotism, but due to superior commercial terms, reliability, and availability.

The Reusability Revolution

SpaceX's revolutionary approach to rocket reusability has fundamentally altered launch economics. While ISRO continues building new rockets for each mission, SpaceX's Falcon 9 first stage has been reused up to 23 times, dramatically reducing manufacturing costs. The company's approach to rapid iteration and learning from failure contrasts sharply with ISRO's more cautious, government-oriented methodology.

This reusability advantage extends beyond cost savings to operational flexibility. SpaceX can maintain a larger fleet of available boosters, enabling more frequent launches and shorter customer wait times. Reusable rockets can reduce launch costs by up to 70%, a savings that SpaceX partially passes to customers while maintaining healthy profit margins.

Strategic Implications And Future Outlook

Prime Minister Modi's ambitious vision of 50 annual launches by 2030 and the creation of five space unicorns acknowledges the urgency of addressing these competitive disadvantages. The government's space sector reforms have already resulted in over 300 space startups, but these companies need reliable, cost-effective launch services to succeed globally.

Recent developments show promise: Indian consortiums led by Pixxel, Dhruva Space, SatSure, and PierSight have won significant contracts, including a ₹1,200 crore Earth Observation constellation project. However, these private companies will likely continue relying on international launch providers until ISRO addresses its fundamental competitiveness issues.

The path forward requires ISRO to embrace reusable rocket technology, dramatically increase launch frequency, improve cost competitiveness, and maintain transparent communication with commercial clients. Without these changes, Indian space companies will continue choosing SpaceX and other international providers, despite the strategic preference for domestic launch services.

The current situation represents both a challenge and an opportunity for India's space sector. While losing commercial customers to foreign competitors is concerning, it also highlights the urgent need for systemic reforms that could ultimately strengthen India's position in the global space economy.

IDN (With Inputs From WION Report)