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Comrades Editorial · 09 Sep 2026 (PDF)

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In this edition

  1. India’s Space Sector: The Next Leap Space

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Space

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India’s Space Sector: The Next Leap

Source This editorial is based on “Space, the final private sector frontier” published in the Economic Times on 07/09/2026. The article highlights that expanding India’s space ambitions requires transitioning routine rocket and satellite manufacturing to private enterprises, allowing ISRO to focus on frontier research and deep-space missions while addressing workforce and structural reform concerns. India’s space programme has evolved from a small, state-led experimental programme into an end-to-end space ecosystem encompassing indigenous launch vehicles, operational satellite services, planetary exploration, strategic capabilities and private space enterprises. To scale up for future goals like the Bharatiya Antariksh Station by 2035, routine manufacturing must shift to private industry. While employee concerns over job security prompted clarifications that ISRO will not be privatized, this transition allows industry to handle commercial tasks so ISRO can focus purely on advanced research and interplanetary exploration. How has India’s Space Sector Evolved Since Independence?
  • Phase I: Scientific Foundations and Institution-Building (1947–1972)
    • Application-Oriented Foundations and Scientific Vision (1947–1962):
      • India’s space journey began with scientific research but was deliberately directed towards using space technology for national development, rather than participating in the Cold War-era space race.
      • Dr. Vikram Sarabhai established the Physical Research Laboratory (PRL) in 1947, initially focusing on cosmic rays, atmospheric physics and space science.
      • The Indian National Committee for Space Research (INCOSPAR) was established in 1962 under the Department of Atomic Energy.
      • This period established the “Sarabhai Model”, which linked space technology with communication, education, meteorology and natural-resource management.
    • Experimental Rocketry and Institutional Consolidation (1963–1972):
      • India progressed from foreign-assisted sounding-rocket experiments to creating permanent institutions for indigenous space research and development.
      • India launched its first sounding rocket, the American Nike-Apache, from the Thumba Equatorial Rocket Launching Station on 21st November 1963. Thumba was selected because of its proximity to the magnetic equator.
      • ISRO was established in 1969, followed by the creation of the Space Commission and Department of Space in 1972.
      • These institutions enabled India to develop an integrated national programme covering rocket propulsion, satellite engineering, tracking, launch facilities and space applications.
  • Phase II: Experimental Satellites and Indigenous Launch Capability (1975–1994)
    • Satellite Experimentation and Developmental Applications (1975–1983):
      • India moved from theoretical space research to designing satellites and demonstrating their utility for education, communication and natural-resource assessment.
      • Aryabhata, India’s first satellite, was designed domestically and launched by the Soviet Union on 19th April 1975, providing experience in spacecraft design, power systems, telemetry and mission control.
      • The Satellite Instructional Television Experiment (SITE), 1975–76, delivered educational programmes to approximately 2,000+ villages across 6 states.
      • The Bhaskara-I and Bhaskara-II satellites, launched in 1979 and 1981, conducted experimental remote sensing for hydrology, forestry and oceanography.
      • APPLE, launched in 1981, was India’s first experimental geostationary communication satellite and became the technological precursor to the operational INSAT system.
    • Indigenous Launch Capability and Operational Satellite Systems (1980–1994):
      • India acquired independent access to space while converting experimental satellite projects into operational national infrastructure.
      • On 18th July 1980, the indigenous Satellite Launch Vehicle-3 (SLV-3) placed the Rohini RS-1 satellite in orbit, making India the 6th country at that time to possess an indigenous satellite-launch capability.
      • The INSAT system, operationalised with INSAT-1B in 1983, integrated telecommunications, television broadcasting, meteorological observation and disaster-warning services.
      • Experience gained through SLV-3 and Augmented SLV culminated in the first successful developmental flight of the Polar Satellite Launch Vehicle (PSLV) in 1994, establishing the foundation of India’s reliable launch ecosystem.
  • Phase III: Operational Expansion and Strategic Autonomy (1995–2007)
    • Launch-Vehicle Diversification and Strategic Space Autonomy (1995–2007):
      • India expanded from small polar-launch capability to geosynchronous launches, dedicated educational satellites and independent navigation-related technologies.
      • The PSLV matured into India’s principal launch vehicle for Earth-observation, scientific and commercial missions.
      • The Geosynchronous Satellite Launch Vehicle, first successfully flown in 2001, expanded India’s ability to launch heavier communication satellites into geosynchronous transfer orbit.
      • The operationalisation of the INSAT, GSAT, Resourcesat, Cartosat and Oceansat series embedded space technology in telecommunications, weather forecasting, ocean services, agriculture and disaster management.
  • Phase IV: Planetary Exploration and Advanced Mission Capabilities (2008–Present)
    • Planetary Exploration, Cryogenic Autonomy and Heavy-Lift Capability (2008–2017):
      • India evolved from an Earth-orbit-focused programme into a spacefaring nation capable of planetary exploration, space science and heavier satellite launches.
      • Chandrayaan-1, launched in 2008 with 11 Indian and international scientific instruments, helped establish evidence of water and hydroxyl molecules on the Moon.
      • The Mars Orbiter Mission, placed in Martian orbit in 2014, made India the first country to reach Mars orbit successfully on its maiden attempt and the first Asian country to do so.
      • The successful GSLV-D5 mission in 2014, powered by an indigenous cryogenic upper stage, represented a major achievement in cryogenic technological autonomy.
      • The operationalisation of LVM3 in 2017 provided a heavy-lift capacity of approximately 4 tonnes to Geosynchronous Transfer Orbit.
    • Lunar Precision, Human Spaceflight and Advanced Orbital Capabilities (2018–2025):
      • India progressed towards autonomous lunar landing, human spaceflight, solar observation and spacecraft-docking capabilities.
      • The Chandrayaan-2 orbiter, launched in 2019, continued high-resolution lunar observations despite the lander’s unsuccessful descent.
      • On 23rd August 2023, Chandrayaan-3 made India the 4th country to soft-land on the Moon and the 1st to land near its southern polar region.
      • Aditya-L1, placed in a halo orbit around the Sun–Earth L1 point in 2024, became India’s first dedicated solar observatory.
      • The Space Docking Experiment (SpaDeX) demonstrated rendezvous and docking in January 2025, making India the fourth country to demonstrate in-space docking capability, a prerequisite for the Gaganyaan programme, space stations and lunar sample-return missions.
    • Private-Sector Expansion and Commercial Space-Economy Transition (Present):
      • India’s space sector is shifting from an ISRO-led model to a whole-of-nation NewSpace ecosystem, enabled by NewSpace India Limited (NSIL), IN-SPACe, Indian Space Policy 2023 and liberalised FDI norms.
      • The number of space start-ups increased from one in 2014 to over 400 in 2026, with firms such as Skyroot, Agnikul and Pixxel operating across the value chain.
      • To expand the USD 8.4-billion Indian space economy to USD 44 billion by 2033, automatic-route FDI is permitted up to 74% in satellite activities.
What are the Key Developments Propelling the Evolution of India’s Space Sector?
  • Opening the Entire Space Value Chain to Private Participation:
    • The Indian Space Policy 2023 ended ISRO’s near-monopoly by permitting Non-Government Entities (NGEs) to undertake end-to-end activities, including satellite manufacturing, launch services, remote sensing, communication services, ground infrastructure and space-based applications.
    • The policy seeks to reposition ISRO as an advanced research and technology-development agency, while private industry undertakes routine manufacturing and commercial operations.
    • Companies such as Skyroot Aerospace (developed Vikram-1, India’s first privately developed orbital-class launch vehicle), Agnikul Cosmos, Pixxel, Dhruva Space, Bellatrix Aerospace and Digantara now operate in specialised segments of the space value chain.
  • Institutional Specialisation through the ISRO–IN-SPACe–NSIL Framework:
    • India has established a clearer division between research, authorisation, commercialisation and industrial production, reducing the institutional burden on ISRO.
    • IN-SPACe, operationalised after the 2020 reforms, serves as the single-window promoter, facilitator and authorising agency for private space activities.
    • NSIL functions as the commercial arm of the Department of Space, handling commercial launches, demand-driven satellite missions and technology transfers.
    • ISRO can consequently concentrate on frontier research, human spaceflight, planetary exploration and next-generation launch technologies, instead of remaining the sole producer and service provider.
  • Technology Transfer and Shift towards Industry-Led Manufacturing:
    • ISRO-developed technologies are increasingly being transferred to Indian industry, enabling a transition from vendor-based production to independent industrial capability.
    • By August 2026, NSIL had signed 118 Technology Transfer Agreements covering 83 ISRO/Department of Space technologies for transfer to Indian industry.
    • In February 2026, IN-SPACe facilitated the ₹511-crore, ten-year transfer of SSLV technology to Hindustan Aeronautics Limited, enabling industry-led production and commercial launch services.
    • NSIL has also contracted a HAL–L&T consortium to manufacture five PSLV-XL launch vehicles, progressively moving complete launcher production outside ISRO.
  • Financial Reforms and Improved Access to Risk Capital:
    • The Government has introduced liberalised foreign investment rules and dedicated funding mechanisms to address the sector’s high capital intensity, technological risks and long gestation periods.
    • The revised FDI policy permits up to 74% automatic-route FDI in satellite manufacturing, operation and data products; 49% in launch vehicles and spaceports; and 100% in the manufacture of components and subsystems.
    • A government-supported ₹1,000-crore Venture Capital Fund has been approved to finance growth-stage space companies.
    • These measures can help Indian firms cross the “valley of death” between laboratory prototypes and commercially scalable space products.
  • Expansion of Launch Infrastructure and Responsive Launch Services:
    • New launch vehicles and spaceports are being developed to capture the expanding global market for small satellites, dedicated launches and rapid orbital deployment.
    • The Small Satellite Launch Vehicle (SSLV) has been designed as an on-demand, quick-turnaround launch vehicle capable of placing satellites weighing up to approximately 500 kg into Low-Earth Orbit.
    • India’s second spaceport at Kulasekarapattinam, Tamil Nadu, is being developed primarily for polar launches by SSLV and private-sector rockets.
  • Advancement in Frontier Missions and Critical Space Technologies:
    • Missions involving lunar landing, solar observation, docking and human spaceflight are expanding India’s capabilities from satellite services to complex orbital and deep-space operations.
    • Chandrayaan-3 made India the fourth country to soft-land on the Moon and the first to land near its southern polar region in 2023.
    • Aditya-L1, placed in a halo orbit in 2024, established India’s first dedicated solar observatory, while XPoSat added space-based X-ray polarimetry capabilities.
    • The Gaganyaan programme, Proposed Bharatiya Antariksh Station (by 2035) and targeted Indian crewed lunar mission by 2040 are creating demand for human-rating, life-support, docking and re-entry technologies.
  • Growing Commercial Demand for Space-Based Services:
    • Expansion in telecommunications, navigation, geospatial analytics, agriculture, climate monitoring and disaster management is transforming space from a mission-oriented activity into a data- and service-driven economy.
    • IN-SPACe’s decadal strategy identifies major opportunities in satellite communication, Earth observation, navigation, satellite manufacturing, launch services and space situational awareness.
    • A private consortium led by Pixxel, together with Dhruva Space, SatSure and PierSight, has been selected for an indigenous Earth Observation satellite constellation under the public–private partnership model.
      • The constellation is expected to provide commercially usable data for precision agriculture, disaster management, climate monitoring, maritime surveillance and urban planning.
What are the Key Concerns Associated with India’s Space Sector?
  • Limited Commercial Scale Despite Strong Technological Credentials:
    • India has demonstrated sophisticated mission capabilities, but its share in the rapidly expanding global space economy remains disproportionately small (only about 2% of the global space market).
    • India remains stronger in upstream government-led missions and cost-effective launches than in high-value downstream segments such as satellite broadband, geospatial analytics, direct-to-device communication and space-based digital services.
    • Achieving the targeted USD 11 billion in space exports by 2033 will require Indian firms to acquire global customers instead of remaining dependent primarily on ISRO and government procurement.
  • Funding Gap and Long Gestation Period for Space Start-ups:
    • Space enterprises require substantial upfront investment, repeated testing and several years before earning commercial revenue, creating a severe patient-capital deficit.
    • The Government identifies high capital requirements, technological and market risks, long gestation periods and limited availability of patient capital as major constraints for deep-technology start-ups.
  • Dependence on Imported Critical Components and Technology Bottlenecks:
    • India possesses end-to-end mission capability but continues to face vulnerabilities in advanced electronics, sensors, specialised materials and high-end manufacturing equipment.
    • Space-grade semiconductors, radiation-hardened electronics, travelling-wave-tube amplifiers, high-resolution sensors, optical components and electronic design tools are difficult to source domestically at scale.
    • International export-control regimes and geopolitical disruptions can delay missions and expose Indian companies to supply-chain and technological-denial risks.
  • Regulatory Uncertainty and Absence of Comprehensive Statutory Architecture:
    • India’s private-space expansion is presently guided primarily by the Indian Space Policy 2023 and IN-SPACe’s administrative guidelines, rather than a comprehensive parliamentary space law.
    • Greater legal clarity is required regarding licensing, third-party liability, accident compensation, insurance, satellite registration, environmental damage, spectrum use, debris responsibility and intellectual-property ownership. Non clarity discourages investors and increases insurance costs.
    • Under the Outer Space Treaty, 1967 and Liability Convention, 1972, the Government of India may bear international responsibility or liability for space activities conducted by Indian private entities.
  • Unequal Access to Infrastructure and Risk of Continued ISRO Dependence:
    • Start-ups continue to depend heavily on ISRO for vibration testing, thermal-vacuum testing, propulsion facilities, telemetry, launch integration and in-orbit validation.
    • IN-SPACe has introduced discounted access to ISRO infrastructure and the PSLV Orbital Experimental Module (POEM), but limited capacity can create scheduling delays and preference conflicts between public missions and commercial projects.
    • Without independent shared testing centres and private launch infrastructure, India may create private ownership without genuine operational autonomy.
  • Shortage of Specialised Talent and Weak Industry–Academia Translation:
    • India produces a large number of engineering graduates, but relatively few institutions offer multidisciplinary training integrating aerospace engineering, electronics, material science, data analytics and regulatory studies.
    • Critical shortages exist in space systems engineering, avionics, orbital mechanics, cryogenic propulsion, space medicine, satellite cybersecurity, space law and high-reliability manufacturing.
    • Competition from better-funded global firms can also create a deep-tech brain drain, particularly after Indian engineers acquire experience in scarce space technologies
  • Space Debris, Orbital Congestion and Environmental Sustainability:
    • Expanding mega-constellations intensify risks of collisions, radio-frequency interference and congestion in valuable Low-Earth Orbit slots; ISRO must therefore conduct regular Space Object Proximity Analysis and Collision-Avoidance Manoeuvres.
    • ISRO’s Indian Space Situational Assessment Report 2025 recorded 1,911 catalogued objects re-entering Earth’s atmosphere during 2025, including spacecraft, rocket bodies and debris objects.
    • India’s commitment to achieve Debris-Free Space Missions by 2030 will require binding disposal standards for both ISRO and private operators, alongside stronger space-situational-awareness capacity.
  • Strategic Vulnerabilities in Satellite Constellations and Ageing Infrastructure:
    • India faces a narrowing operational window for critical space-based assets, particularly regional satellite navigation and earth-observation capabilities, due to hardware wear and delayed replacements.
    • Dependence on foreign-sourced critical components (like atomic clocks) alongside hardware failures has compromised continuous coverage, threatening national security and civil navigation reliance.
    • For instance, the NavIC constellation currently has 8 functional satellites in total, but only 3 are actively broadcasting navigation signals for positioning services.
  • Operational Bottlenecks and Launch Vehicle Reliability Challenges:
    • Recent vehicle anomalies and payload delivery failures have exposed underlying vulnerabilities in vehicle manufacturing, quality assurance, and execution bandwidth.
    • Technical glitches across heavy-lift and polar satellite launch platforms have disrupted supply chains, delayed commercial customer manifests, and bottlenecked strategic space deployment schedules.
    • For instance, the PSLV-C61 mission failed in May 2025 due to an anomaly during the third-stage operation, highlighting vulnerabilities in launch-vehicle reliability and quality assurance.
What Measures are Needed to Strengthen India’s Space Sector?
  • Enact a Comprehensive National Space Law:
    • India should convert its predominantly policy-based regulatory framework into a statutory regime governing both public and private space activities.
    • The proposed law should clearly regulate licensing, satellite registration, third-party liability, mandatory insurance, accident compensation, intellectual property, data ownership and environmental responsibility.
    • A predictable legal framework would reduce investor uncertainty while ensuring that commercial growth remains consistent with public safety, national security and India’s international obligations.
  • Expand Patient Capital and Government-Backed Risk Financing:
    • India must create financing instruments suitable for the capital-intensive, failure-prone and long-gestation character of space technology.
    • The government should develop credit-guarantee mechanisms, launch-failure insurance, viability-gap funding and blended finance for early-stage firms.
    • Public financial institutions and domestic pension or insurance funds could be encouraged to invest in professionally managed deep-tech and space-technology funds.
  • Deepen Indigenous Manufacturing and Critical-Technology Autonomy:
    • Mission-mode programmes are needed for radiation-hardened semiconductors, space-grade sensors, travelling-wave-tube amplifiers, optical payloads, advanced composites, atomic clocks and reusable propulsion systems.
    • Government procurement should include phased domestic value-addition requirements, while avoiding rigid localisation that increases mission costs or slows innovation.
    • Common certification standards and testing support should enable Indian MSMEs to enter global space supply chains, reducing exposure to export controls and geopolitical disruptions.
  • Create Shared Infrastructure and Accelerate Technology Transfer:
    • Private companies require affordable access to specialised infrastructure that is financially unviable for individual start-ups to establish independently.
    • Regional facilities should provide thermal-vacuum chambers, vibration testing, clean rooms, propulsion test stands, electromagnetic compatibility testing and satellite integration services on a transparent pay-per-use basis.
    • The PSLV Orbital Experimental Module should be expanded as an in-orbit testing platform through which start-ups and universities can validate new payloads before undertaking independent missions.
  • Generate Assured Domestic Demand for Space-Based Services:
    • India needs to evolve from a technology-push model to a demand-driven ecosystem in which government departments and private users routinely purchase space-derived products.
    • For example, the NavIC- enabled Vessel Communication and Support System under PM Matsya Sampada Yojana provides two-way communication and emergency support to marine fishers.
    • Multi-year procurement commitments and outcome-based contracts can provide start-ups with predictable revenue and help them attract private investment.
  • Build Specialised Human Capital and Stronger Industry–Academia Linkages:
    • Universities should establish specialised programmes in orbital mechanics, spacecraft systems engineering, space medicine, satellite cybersecurity, geospatial artificial intelligence and space law.
    • ISRO’s RESPOND programme, Space Technology Incubation Centres and Regional Academic Centres for Space should be expanded to Tier-II and Tier-III institutions.
    • Mobility programmes allowing scientists to work temporarily across ISRO, academia and private industry would facilitate knowledge diffusion while reducing deep-tech brain drain.
  • Build a Secure, Sustainable and Globally Competitive Space Ecosystem:
    • Commercial expansion must be supported by stronger space-situational awareness, cybersecurity, debris mitigation and international partnerships.
    • India should enforce end-of-life disposal, passivation and controlled re-entry standards to fulfil its commitment to achieve Debris-Free Space Missions by 2030.
    • NETRA, collision-avoidance systems and domestic tracking networks should be expanded to protect Indian satellites from debris, hostile interference and cyberattacks.
    • India should also use partnerships such as NISAR with the US, LUPEX with Japan and BRICS Remote-Sensing Satellite Constellation cooperation for technology development and global market access.
Conclusion
  • India’s space sector must evolve towards a collaborative ecosystem driven by greater public–private partnerships, innovation, and shared infrastructure. While the original State-led model successfully enabled missions like Chandrayaan, current ambitions require shifting mature manufacturing and commercial operations to private players via robust regulation by IN-SPACe and market development by NSIL. ISRO should focus on frontier exploration, research, and strategic capabilities without being reduced to a contract issuer, balancing commercial scale with safeguards to build a globally competitive NewSpace economy.