ISRO Moves Out of Satellite, Rocket Assembly in Historic Pivot to Private Sector

India’s space agency is stepping back from manufacturing rockets and routine satellites, transferring production wholesale to the private sector in a historic structural shift aimed at building a $44 billion space economy.

Speaking at a summit on Thursday, Dr Pawan Goenka, Chairman of Indian National Space Promotion and Authorisation Centre (IN-SPACe), confirmed that Indian Space Research Organisation (ISRO) will pivot away from routine assembly to focus entirely on advanced research, scientific exploration, and primary infrastructure.

Private Firms Take Over Key Launchers

The manufacturing rights for the Small Satellite Launch Vehicle (SSLV) have already moved to Hindustan Aeronautics Limited following a competitive bidding round. However, future handovers of heavy-lift platforms will exclude state-owned firms entirely to foster pure private-sector leadership.

Goenka said that both the Polar Satellite Launch Vehicle (PSLV) and India's most powerful operational rocket, the Launch Vehicle Mark-3 (LVM3), are slated for private industry transfer in the next phase. Additionally, the government plans to select a private operator for a new launch centre within five months.

A $44 Billion Horizon

He claimed that ISRO has already transferred 120 homegrown technologies to private enterprises. The goal is to scale India's space economy from its current $8 billion valuation to $44 billion by 2033 through three primary drivers: international market expansion, cross-industry space technology adoption, and sustained government demand.

To anchor initial commercial demand, the Department of Defence recently commissioned 31 satellites directly from private firms. This transition positions private players to own space assets outright, monetise satellite data, and manage commercial operations while ISRO redirects its workforce toward pioneering deep-space technologies.