India’s space sector is at a turning point: while ISRO faces attrition, the private industry is booming with over 400 start-ups, a space economy valued at $8.4 billion, and landmark achievements like Skyroot Aerospace’s Vikram-1 launch.

The challenge now is to balance coexistence, strengthen ISRO’s morale, and harness private innovation to achieve India’s ambitious goals of Gaganyaan, a space station by 2035, and a lunar mission by 2040.

India’s growing private space sector is reshaping the landscape. The reforms of 2020, which allowed foreign direct investment, created fertile ground for entrepreneurship.

Today, nearly 400 start-ups are active across launch vehicles, satellites, propulsion systems and space-grade electronics.

The Indian National Space Promotion and Authorisation Centre (IN-SPACe) has emerged as a single-window interface, enabling private industry to collaborate with ISRO and government agencies.

This institutional change has accelerated innovation and investment, transforming the sector from a marginal contributor to one valued at $8.4 billion, with projections to reach $40–45 billion by 2035 and potentially $100 billion by 2040.

The success of Skyroot Aerospace exemplifies this transformation. Earlier this month, Skyroot became India’s first space-tech unicorn, raising $60 million. Days later, it launched Vikram-1, India’s first privately designed and developed orbital rocket, from ISRO’s Satish Dhawan Space Centre.

Built with carbon composite structures, solid-fuel boosters and a 3D-printed liquid engine, Vikram-1 demonstrated the private sector’s ability to deliver cutting-edge technology. The mission deployed multiple payloads, including satellites and technology demonstrators, while symbolically carrying tributes to India’s pioneering scientists. This achievement marked the dawn of India’s commercial launch capability.

Yet, this rapid growth has unsettled ISRO. About 120 scientists resigned or opted for voluntary retirement over the past year, lured by higher pay and greater challenges in private firms. Skyroot itself was founded by two former ISRO scientists, Pawan Kumar Chandana and Naga Bharath Daka, while several senior figures, including former chairman S Somanath, have joined start-ups post-retirement. 

The department of space has responded with a memorandum instructing ISRO centres not to accept resignations directly, fearing a debilitating impact on flagship missions such as Gaganyaan in 2027, the planned space station in 2035, and the lunar mission in 2040.

The insecurity is real. Although ISRO’s attrition rate remains below 1 percent, filling vacated posts is difficult. Younger scientists are increasingly influenced by the success of their peers in private ventures. 

To counter this, India must raise ISRO scientists’ morale, improve benchmarks and enhance pay packages. Without such measures, the risk of losing talent to private firms will persist, undermining national programs.

The path forward lies in coexistence. India can emulate NASA’s model, where core projects remain under government control while private companies contribute to missions and component development. 

IN-SPACe Chairman Pawan Goenka has already outlined reforms to streamline authorisation, expand industry access to infrastructure, and create predictable business environments.

Initiatives include private management of satellite launch complexes, a ₹900-crore R&D fund for academia, and deeper collaboration between industry, academia and government. These steps aim to ensure that private growth complements ISRO’s mission rather than competes with it.

India’s space future depends on deliberate collaboration. The private sector brings agility, innovation and capital, while ISRO provides heritage, infrastructure and credibility.

Together, they can propel India into the ranks of leading space powers, achieving ambitious milestones and expanding the country’s role in the global space economy.

The challenge is not whether ISRO and private players can coexist, but how effectively they can align their strengths to realise India’s cosmic ambitions.

Agencies