ISRO is preparing to step away from the routine production of rockets as India opens more of its space sector to private companies and public sector units. The move is aimed at allowing the space agency to devote more attention to research, technology, science and exploration.
ISRO to move away from routine rocket production
IN-SPACe chairman Pawan Goenka said the transition is already underway, with private players and PSUs being brought in to take over the production of launch vehicles.
Goenka said, quoted by Outlook India, “ISRO will not make any launch vehicles and will not manufacture any launch vehicles. That will all be done by the private sector or PSU.”
The shift would separate the manufacturing of established launch vehicles from ISRO's research and development work, allowing the organisation to focus on newer technologies and missions.
Private sector gets bigger role in launch vehicles
As part of the transition, technology for the three-stage Small Satellite Launch Vehicle has been transferred to Hindustan Aeronautics Limited following a competitive bidding process.
Production of the Polar Satellite Launch Vehicle and Launch Vehicle Mark-3 is also being opened to private industry consortia. The government is looking to give private companies a larger role in future launch vehicle manufacturing.
The government has also proposed inviting bids within five years to operate a commercial launch pad, further expanding private participation in India's space programme.
India's space economy set for major expansion
The changes are part of a wider push to commercialise India's space programme and build a larger domestic space industry.
The country's space sector is currently valued at around $9 billion, with projections putting it at $40-45 billion over the next decade. The government has also set a target of building a $44 billion space economy by 2033.
India's space industry has grown significantly since reforms opened the sector to private companies and start-ups. Government data shows that around 440 space start-ups had been registered by August 2026, compared with just one in 2014.
More technologies transferred to industry
Private investment has also increased with government support, including funding and technology-transfer initiatives.
More than 120 indigenous space technologies have already been transferred to commercial companies, while ISRO's commercial arm, NewSpace India Ltd, continues to facilitate technology transfers to industry.
The changes mark a significant shift in ISRO's traditional role, with routine rocket manufacturing moving towards private industry while the space agency focuses more closely on advanced research, exploration and the development of new technologies.