The Indian government has approved the production of more than 60 LVM-3 rockets, primarily with private sector involvement, to bolster the country's nascent space industry.

This initiative, announced by IN-SPACe Chairman Pawan Kumar Goenka at the Bharat Space Conclave organised by FICCI, aims to generate substantial business opportunities worth approximately ₹25,000 crore for private entities over the next 12 to 14 years.
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The LVM-3, also known as GSLV MK-III, serves as a medium-to-heavy lift launch vehicle capable of placing 4,000 kg payloads into Geosynchronous Transfer Orbit (GTO) or 8,000 kg into Low Earth Orbit (LEO). Developed entirely by ISRO, it features a three-stage configuration: solid propellant S-200 boosters, a liquid core stage with Vikas engines, and a cryogenic upper stage using LOX and LH2. 

These rockets are essential for deploying heavy satellites, addressing India's growing needs in communication, navigation, and earth observation.

IN-SPACe, tasked with promoting private participation and authorising non-government space activities, plays a pivotal role in this shift. Since India liberalised its space sector in 2020, nearly 250 start-ups have emerged, yet industry concerns over insufficient demand persist.

To counter this, the government plans a constellation of 52 surveillance satellites dedicated to defence purposes, projected to create another ₹25,000 crore in private sector business.

Recent geopolitical events, such as Operation Sindoor in May 2025 involving hostilities with Pakistan, have accelerated these plans under the Space-Based Surveillance (SBS) Phase 3 programme, approved at ₹26,968 crore.

This constellation, comprising 21 ISRO-built and 31 private-sector satellites, will provide real-time, all-weather surveillance over adversary territories, including deep into China and Pakistan, enhancing India's Observe-Orient-Decide-Act (OODA) loop. IN-SPACe is also collaborating with government departments to channel earth observation data demand to private players within the next three years.

Complementing these efforts, ISRO is transferring full technology, design, and manufacturing rights for Small Satellite Launch Vehicles (SSLVs) to private firms. Hindustan Aeronautics Limited (HAL) secured the bid in June 2025 for ₹11 crore (US$ 59.70 million), marking the first complete launch vehicle technology handover by ISRO. HAL's first SSLV is slated for readiness by 2027, with ISRO providing training for two missions, after which private entities will become the sole producers in India.

A FICCI-EY report, 'Unlocking India's Space Economy - Pathways to Growth, Innovation and Global Leadership', released at the conclave, forecasts India's space economy expanding from USD 8.4 billion in 2022 to USD 44 billion by 2033, capturing 8 per cent of the global market.

Globally, the sector is expected to surpass USD 1.8 trillion by 2035, propelled by commercial satellite services, deep-space exploration, and space-based infrastructure. Satellite communication (SATCOM) alone could reach USD 14.8 billion by 2033, aiding digital connectivity in rural areas.

This growth stems from policy reforms like the Indian Space Policy 2023, alongside institutions such as IN-SPACe and NewSpace India Limited (NSIL).

The sector is transitioning from a government-dominated model to a commercially driven, innovation-led ecosystem with increased international collaborations. Capacity building, skilled manpower, infrastructure, funding, and demand creation remain key to realising these ambitions, as emphasised by Goenka.

Recent milestones, including the LVM3-M5 launch of the CMS-03 communication satellite in November 2025, underscore operational reliability. These developments position India as a competitive player in the global space arena, fostering indigenous manufacturing and private innovation in defence and commercial applications.

Based On PTI Report

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