Shared Space: Private manufacturers turn spotlight on big brother ISRO

A single remark has shown how combustible the “privatisation” question is in India’s space ecosystem. On August 21, Indian National Space Promotion and Authorisation Centre (IN‑SPACe) Chairperson Pawan Goenka sparked controversy when he said ISRO would “eventually” stop manufacturing launch vehicles, with production shifting to private industry or PSUs - a remark widely read as an unofficial policy signal and immediately challenged by ISRO unions.

IN‑SPACe is the single‑window, autonomous agency under the Department of Space that promotes, authorizes and supervises private space activities — from building launch vehicles and satellites to delivering space‑based services — to expand non‑governmental participation in India’s space ecosystem.

Goenka hardly went too far as he was stating a trend, something that would take over a decade to fructify. Defence manufacturer HAL had faced similar fears when private firms seemed to be “eating into its space”, but soon realised its core strength was legacy manufacturing and experience that newcomers could not replicate. Private industry expands capacity, not replaces it; partnership drives Atmanirbharta; and competition forces overdue modernisation.

Interestingly the word “privatisation” that caught a raw nerve in a monopolistic PSU like the six-decade old ISRO, was never used. It was assumed. ISRO has always built India’s rockets, satellites, engines, and deep‑space missions. Unfortunately, a monopoly creates habits - slow processes, hierarchical culture, and comfort with in‑house control.

ISRO’s insecurity to a point is rational because policy ambiguity over privatisation threatens ISRO’s engineering identity and workforce stability. A bureaucratic, risk‑averse engineering culture and slow internal reform have made the organisation structurally conservative as India slowly includes the private industry into its fold. ISRO’s taxpayer‑funded IP needs clear licensing rules; workforce displacement fears must be addressed; excessive outsourcing risks eroding hands‑on engineering capability; and strategic systems like propulsion and launch operations require tight oversight.

India’s proposed space model as defined by the 2020 reforms and the Indian Space Policy 2023, create a calibrated, ISRO‑led hybrid ecosystem — not privatisation — shifting from a single‑agency monopoly to a multi‑actor national space economy where private players scale mature technologies while ISRO retains strategic, scientific, and frontier role

Air Vice Marshal (Retd.) Maheswaran, founder of the Peninsula Foundation involved in the early integration of space into India’s national security, in an exclusive discussion, told Malayala Manorama that private participation was essential but must be attuned. India needs a multi‑actor space ecosystem where private industry expands capacity while ISRO focuses on frontier science and strategic missions.

Every satellite launch must be now standardized according to global standards.

However, ISRO must have control. Or it can lead to attrition of qualified manpower it has managed to keep, said Matheswaran sagely. He adds if ISRO is in trouble, there will be no guidance to the private sector.

India’s space reforms push faster, cheaper, larger‑scale execution by shifting routine manufacturing and commercial missions to industry, mirroring NASA’s model where private firms build and operate systems while the agency focuses on frontier science. The move expands capacity, boosts global competitiveness, and frees ISRO to prioritise Gaganyaan, NGLV and deep‑space exploration. As the ecosystem matures, private industry can accelerate larger‑propulsion development, eventually take over launcher production, and drive costs down.

The Kulasekarapattinam Spaceport in Tamil Nadu,  India’s second, designed for SSLV (Small Satellite Launch Vehicles) launches, will augment SHAR (Sri Harikota) and add dedicated commercial capacity, added Matheswaran. As India’s first private spaceport, it anchors a growing private ecosystem - Agnikul, Skyroot, Bellatrix, Dhruva Space, Pixxel, Data Patterns, L&T and others - that now contributes launch capability, propulsion innovation, satellite manufacturing, avionics depth and ground‑segment infrastructure. The site will support up to 24 launches a year using a mobile structure, directly multiplying ISRO’s capability. Relieving Sriharikota’s load, the new spaceport comes online next year.

India is attempting a U.S.-style model — state-led strategy with private-led manufacturing — but without America’s industrial depth. A cultural reset is now essential, driven from the top. ISRO seeks expansion without losing core capability; industry demands real autonomy; government wants scale and global competitiveness. The only durable path is a calibrated transition that protects public IP, preserves ISRO’s engineering base, and builds a tightly regulated, high‑trust private ecosystem.