ISRO’s ‘privatisation’ move: What India’s space policy says

Source: The post “ISRO’s ‘privatisation’ move: What India’s space policy says” has been created based on “ISRO’s ‘privatisation’ move: What India’s space policy says” published in “The Hindu” on 12th September 2026.

UPSC Syllabus: GS-2-Governance

Context: Several employee associations of the Indian Space Research Organisation (ISRO) have raised concerns over the increasing role of private players in the space agency’s core activities. The concerns followed a statement by IN-SPACe Chairperson Pawan Goenka that ISRO would eventually stop manufacturing launch vehicles and operating the spaceport currently under development.

Introduction

India’s space sector has undergone significant reforms since 2020, with the establishment of IN-SPACe and the Indian Space Policy, 2023. The objective is to expand India’s space ecosystem and increase its share in the global space economy, rather than privatise ISRO.

Key Features of the Space-Sector Reforms

1. Research-Oriented Role for ISRO: ISRO is expected to focus on research, new technologies, applications and advanced missions, while gradually moving away from manufacturing operational space systems.
2. Promotion of Private Sector: Private entities are allowed to undertake end-to-end space activities, including satellites, launch services, ground infrastructure, communication, remote sensing and navigation.
3. Role of IN-SPACe: IN-SPACe acts as an interface between ISRO and private entities. It promotes private participation, provides authorisation, facilitates technology transfer and creates an enabling environment for industry.
4. Commercial Role of NSIL: NewSpace India Limited (NSIL), the commercial arm of ISRO, is responsible for commercialising publicly developed space technologies and providing launch services to Indian and international customers.

Technologies and Activities Being Transferred

1. Small Satellite Launch Vehicle (SSLV): The SSLV was operationalised in 2024 and designed with industry participation in mind. HAL won the 2025 bid to manufacture SSLVs and eventually commercialise them.
2. Polar Satellite Launch Vehicle (PSLV): PSLV became the first launch vehicle to be commercialised in 2022, with manufacturing of five vehicles awarded to a HAL-L&T consortium. Further technology transfer to industry is being pursued.
3. LVM3 and Spaceport: The commercialisation of LVM3 is being pursued, while IN-SPACe has also initiated the process of handing over the upcoming Kulsekarapattinam spaceport for private operation and management, with ISRO providing technical support.

Need of Private Participation

1. Low Global Market Share: Despite being a major space-faring nation, India’s share in the global space economy is less than 2%. Private participation can help expand this share.
2. Rising Private Investment: Investment in India’s private space sector increased nearly sixfold, from $100.5 million in 2021-22 to $618.5 million by March 2026.
3. Expanding the Space Economy: India aims to expand its space sector from around $9 billion in 2026 to $40–45 billion over the next decade.

Concerns

1. Loss of Critical Expertise:
   India needs to preserve in-house expertise within ISRO, particularly for strategic requirements and advanced scientific missions.
2. Nascent Private Sector:
   The private space sector is still at an early stage and currently cannot compete with ISRO in terms of expertise and capabilities.
3. Workforce Concerns:
   ISRO employee associations have raised concerns about the transfer of core processes to private entities and its implications for the existing workforce.

Way Forward

1. Preserve Strategic Capabilities: ISRO should retain expertise necessary for strategic needs and advanced scientific missions such as Chandrayaan, Gaganyaan and the Bharatiya Antariksh Station.
2. Ensure Gradual Technology Transfer: Private entities should receive adequate technical guidance, training and handholding during the technology-transfer process.
3. Focus ISRO on Core Research: ISRO should increasingly concentrate on new technologies, scientific missions and human spaceflight, while private industry undertakes routine commercial activities.
4. Strengthen Public-Private Partnership: A balanced partnership among ISRO, IN-SPACe, NSIL and private entities can expand India’s space ecosystem while protecting strategic capabilities.
5. Balance Commercialisation with National Interest: Commercialisation should proceed without compromising national security, strategic autonomy and India’s long-term scientific capabilities.

Conclusion: India’s space reforms represent expansion and commercialisation rather than privatisation of ISRO. A balanced approach, where private players undertake routine commercial activities while ISRO focuses on strategic, scientific and advanced technological missions, can strengthen India’s space capabilities and help achieve a larger share of the global space economy.

Question: India’s space-sector reforms seek to expand private participation while retaining ISRO’s strategic and scientific role. Discuss.

Source: Indian Express