India's space sector undergoes biggest revision

The Indian space sector is undergoing a significant transformation as it embraces the private sector's influence. Nine employee bodies of the Indian Space Research Organisation (ISRO) have expressed concerns to chairman V Narayanan about the agency's future amidst the growing presence of commercial players.

ISRO's achievements have been remarkable, but the looming threat of the private sector taking over its responsibilities has raised worries. The private sector's rapid strides in space have been facilitated by India's 2023 space policy, which encouraged greater corporate participation and startup involvement.

The global trend towards private enterprises in space was set in motion by NASA's 1980s decision to encourage private investment, driven by the need to balance routine Earth orbit launches with larger mission funding. NASA's Commercial Orbital Transportation Services (COTS) program, initiated in 2006, further accelerated this shift, leading to the rise of SpaceX and its innovations in partially reusable rockets.

The cost of sending a kilogram of payload to low Earth orbit (LEO) has plummeted from $20,000-50,000 a couple of decades ago to a more affordable $1,500-5,000. This cost reduction has paved the way for a surge in commercial satellite launches, from just 72 in 2005 to 4,510 in 2025.

While India has been watching these developments closely, translating them into domestic policy has taken longer. ISRO's initial efforts to involve the private sector were marred by a disastrous deal with Devas Multimedia in 2005, which led to a decade-long court battle and made policymakers more cautious. However, after 2020, a wave of space startups and sectoral reforms shifted the orbit, culminating in the official recognition of private participation in the 2023 space policy.

This policy has enabled the private sector to manufacture rockets and satellites independently while also leveraging public infrastructure. The goal is to allow ISRO to focus on increasing the number of launches, which are crucial for India's competitiveness in the space market. With only 2% of the global market share, India aims to boost its presence through increased collaboration with private enterprises.