India’s space program is undergoing one of its most profound transformations, with ISRO set to gradually withdraw from manufacturing launch vehicles and routine satellites, transferring these responsibilities to private industry.

The change will redefine ISRO’s role, positioning it as a research and development organisation focused on scientific missions, advanced technologies, and infrastructure that private companies may not be able to create independently.

IN-SPACe Chairman Dr Pawan Goenka confirmed at the India @ 100 Economy Summit that ISRO will no longer build launch vehicles. He stated clearly that all such activities will be handled by private sector firms or public sector undertakings.

This marks a decisive shift in India’s space policy, moving production and commercialisation into the hands of industry while ISRO concentrates on innovation and exploration.

The transition has already begun with the Small Satellite Launch Vehicle (SSLV). Its technology and production rights were transferred to Hindustan Aeronautics Limited after a competitive bidding process.

The next phase will be even more significant, with the Polar Satellite Launch Vehicle (PSLV) and the Launch Vehicle Mark-3 (LVM-3) also slated for privatisation. Unlike the SSLV transfer, public sector companies will not be permitted to participate in the upcoming process, ensuring private industry takes full charge.

Goenka emphasised that ISRO’s future will be defined by research, technology development, specialised satellites, and advanced infrastructure. Once technologies reach maturity, they will be transferred to private companies for commercial operations.

He revealed that ISRO has already transferred 120 technologies to private firms, demonstrating the scale of the ongoing transformation.

The government is also preparing to hand over operations of a new launch centre to private industry, with the operator expected to be finalised within four to five months. This step will further embed private companies into India’s space ecosystem, ensuring they play a central role in launch operations.

India’s ambition is to expand its space economy from approximately $8 billion today to $44 billion by 2033. Goenka explained that achieving this target will require three major drivers: government demand, greater adoption of space technologies by industries outside the traditional sector, and expansion into international markets. He stressed that the government must act as an anchor customer to sustain growth.

The Department of Defence has already placed an order for 31 satellites with private companies, while ISRO will build 21 more under the same program. This dual-track approach ensures continuity while accelerating private sector involvement.

India is also moving towards an ownership-based commercial model, where private companies own satellites and other space assets, monetising their data and services.

For ISRO, this transformation means stepping back from the day-to-day manufacturing that defined its rise as a space power. Instead, the agency will focus on creating technologies and missions that will shape India’s next chapter in space.

The shift is expected to unleash new opportunities for private firms, including established aerospace companies and emerging Start-Ups, while strengthening India’s position in the global space economy.

Agencies