ISRO seeks to ease concerns over India’s space privatisation drive

India’s space agency has moved to reassure its employees that opening the sector to private companies will not reduce its central role. ISRO said it would remain the country’s principal institution for advanced space research, strategic missions, space science, exploration and critical space capabilities.

The statement followed a Sept. 4 letter from an ISRO staff association. The employees sought clarification from Chairman V Narayanan over reports that manufacturing and operational responsibilities currently handled by the agency could be transferred to private and state-run companies. They also said they had received no formal communication from the Department of Space, which oversees ISRO.

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ISRO will continue to remain India's principal institution for advanced space research and technology development, national and strategic missions, space science and exploration, and critical and frontier space capabilities,

The agency posted its response on X on Sunday, saying it would “neither be privatised nor will its importance be diminished”. The reassurance comes as Prime Minister Narendra Modi’s government expands private-sector participation in space, a policy push that began with the sector’s opening to private companies in 2020.

Industry has increasingly taken on rocket manufacturing and other activities once dominated by ISRO. A consortium led by state-run Hindustan Aeronautics and Larsen & Toubro is producing the Polar Satellite Launch Vehicle. The government has also transferred technology for the Small Satellite Launch Vehicle to Hindustan Aeronautics.

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neither be privatised nor will its importance be diminished

Pawan Goenka, chairman of the space regulator IN-SPACe, said the reforms were intended to broaden India’s space industry rather than displace ISRO. “ISRO’s role is by no means diminishing. It will remain the bedrock of Indian space sector,” he said.

ISRO has sent a spacecraft to Mars, landed near the moon’s south pole and developed its own launch vehicles. It is also preparing for India’s first crewed spaceflight.

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ISRO's role is by no means diminishing. It will remain the bedrock of Indian space sector,