ISRO Mulls Exiting Manufacturing Amid India’s Push To Promote Privatisation In The Space Industry

The Indian Space Research Organisation (ISRO) is reportedly considering a significant shift in its manufacturing practices in line with India's broader push to promote privatisation in the space industry. Chairman Pawan Goenka of the government-backed IN-SPACe disclosed during the Business Today summit that ISRO intends to gradually shift away from manufacturing launch vehicles and routine satellites, entrusting these tasks to private companies and public sector undertakings (PSUs).

Goenka elaborated that ISRO would cease production of launch vehicles as the industry takes over this responsibility. The agency will instead concentrate on research and development (R&D), advanced technologies, scientific missions, and specialized infrastructure. Meanwhile, private entities will assume responsibility for commercial manufacturing and operations.

The shift has already begun, with the Small Satellite Launch Vehicle (SSLV) technology being transferred to Hindustan Aeronautics Limited (HAL). The Polar Satellite Launch Vehicle (PSLV) and the Launch Vehicle Mark-3 (LVM3), India's most potent operational rocket, are anticipated to be the next major areas of transfer. The government is inviting private-sector players to take over the end-to-end realization, operation, and commercialization of the LVM3.

According to Goenka, 120 technologies have already been transferred to the private sector, and the agency will subsequently focus on scientific missions, developing new technologies, specialized satellites, and advanced infrastructure. The government is also planning to transfer the operations of a new launch center to private industry, with the operator to be decided within the next 4-5 months.

This transition aligns with India's ambition to grow its space economy from approximately $8 billion currently to $44 billion by 2033, with exports and private-sector demand expected to play a larger role in the coming years.