ISRO is expected to gradually step away from routine launch vehicle manufacturing as private companies take on a larger role in India’s space sector, according to a report citing IN-SPACe Chairman Pawan Goenka.
Speaking at Business Today’s India @ 100 Economy Summit, Goenka said the space agency would increasingly concentrate on research and development, advanced technologies, scientific missions and infrastructure, while launch vehicle manufacturing moves to the private sector or public sector undertakings.
“ISRO will not make any launch vehicles and will not manufacture any launch vehicles. That will all be done by the private sector or PSU,” Goenka said at the conclave.
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SSLV Technology Transfer Marks First Step
The transition has already begun with the Small Satellite Launch Vehicle, or SSLV, whose technology and production rights have been transferred to Hindustan Aeronautics Limited following a bidding process.
The production of the Polar Satellite Launch Vehicle, or PSLV, and Launch Vehicle Mark-3, or LVM3, is also expected to move to private industry.
Goenka said the upcoming process would differ from the SSLV transfer because public sector undertakings would not be allowed to participate.
He also said that 120 technologies have already been transferred from ISRO to the private sector.
The government is further looking to hand over the operation of a new launch centre to private industry, with an operator likely to be selected within the next four to five months.
Private Sector Role to Expand Across Space Economy
The shift comes as India seeks to expand its space economy from around $8 billion currently to $44 billion by 2033.
Goenka identified government demand, wider adoption of space technologies across industries and expansion into international markets as key drivers of the expected growth.
The Department of Defence has already placed an order for 31 satellites with private companies, while ISRO is expected to manufacture another 21 under the programme.
India is also moving towards an ownership-based commercial model under which private companies can own satellites and monetise the data and services generated from them.
The changes are expected to give private industry a larger role not only in manufacturing but also in commercial operations across the space sector.
ISRO to Focus More on Advanced Missions and Research
As routine production shifts away from the space agency, ISRO is expected to devote greater attention to advanced technologies, infrastructure, scientific missions and research and development.
The restructuring is intended to create a clearer division of roles between the national space agency and private industry, with companies taking responsibility for a growing share of launch vehicle production and commercial activity.
The planned transfer of PSLV and LVM3 production, together with the earlier SSLV technology transfer, indicates the direction of the broader transition.
If implemented as outlined, the changes would significantly reshape how India develops, manufactures and operates its launch systems, while allowing ISRO to concentrate more heavily on scientific and technological work.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
