The Indian Space Research Organisation (ISRO) Sunday rejected reports suggesting that the space agency was being privatised or that its role would be diminished, calling such claims “completely baseless and incorrect” amid concerns raised by employee associations over the growing transfer of manufacturing activities to private companies.
The clarification came after nine associations representing employees across several ISRO centres wrote to Chairman V Narayanan seeking clarity on the government’s plans for the space agency, including the future of launch-vehicle manufacturing, existing jobs and recruitment. The concerns followed remarks by IN-SPACe Chairman Pawan Goenka that ISRO would eventually stop manufacturing launch vehicles, with production being undertaken by private companies or public sector undertakings.
ISRO maintained that the reforms were intended to expand India’s overall space ecosystem rather than weaken the national space agency. Under the government’s approach, ISRO would concentrate increasingly on developing advanced and frontier technologies while mature technologies developed by it could be transferred to industry for large-scale production.
ISRO role to remain central
Officials stressed that transferring mature technologies for commercial production should not be equated with privatising ISRO. The agency would continue to play a central role in research, development, strategic missions and cutting-edge space technologies.
The government opened the space sector to greater private participation in 2020, subsequently establishing IN-SPACe to promote, authorise and supervise activities by non-government entities. The Indian Space Policy 2023 further allowed private companies to undertake end-to-end space activities.
The shift has already resulted in greater industry involvement in launch vehicles. In September 2025, ISRO, NewSpace India Limited, IN-SPACe and Hindustan Aeronautics Limited signed an agreement transferring Small Satellite Launch Vehicle technology to HAL for industrial production. Similar efforts to expand industry participation in other mature launch systems have added to concerns among sections of ISRO’s workforce.
Employees seek written clarity
In their September 4 representation to Narayanan, the nine employee associations said they supported private participation and legitimate commercialisation but wanted a clear distinction between encouraging industry and dismantling ISRO’s own capabilities.
The associations argued that launch-vehicle design, realisation, integration, testing and operations represented institutional knowledge and strategic capability rather than merely manufacturing work.
They also sought clarity on whether ISRO would continue to handle the design, development, realisation, integration, testing and launch of the PSLV, LVM3, SSLV and their successors. Questions were also raised about the possible impact on sanctioned posts, vacancies and recruitment over the coming years.
Their concerns intensified after Goenka said at an August 21 event that “eventually, ISRO will not make any launch vehicles and will not manufacture any launch vehicles”, with that work shifting to private companies or PSUs.
The associations said they had not received a corresponding official Department of Space communication explaining the policy, its implementation timeline or its implications for employees.
ISRO’s clarification seeks to draw a line between the two issues: while industry will be given a progressively larger role in producing and commercialising mature space technologies, the government maintains that ISRO itself is neither being privatised nor reduced to an insignificant role in India’s space programme.