'ISRO will neither be privatised, nor...': Space agency clarifies its future role amid private-sector push

The Indian Space Research Organisation (ISRO) on Sunday rejected reports and speculation that the space agency could be privatised or its role reduced.

"ISRO will neither be privatised nor will its importance be diminished," the space agency said in a detailed statement on the future of India's space programme.

The space agency said it would continue to be India's principal institution for advanced space research and technology development, national and strategic missions, space science and exploration, and critical and frontier capabilities.

The clarification came two days after nine ISRO employee associations wrote to Chairman V Narayanan seeking clarity on the proposed transfer of some manufacturing and operational functions to private entities.

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What The Reforms Mean For ISRO

The space agency said private participation was not about reducing its role. Instead, it would allow the agency to focus more strongly on the next generation of India's space programme while industry scales up mature technologies.

"What is changing is not the importance of ISRO, but the scale and structure of India’s space ecosystem," it said.

The reforms, introduced since 2020 and institutionalised through the Indian Space Policy 2023, along with the liberalisation of foreign direct investment rules, are aimed at creating a larger and globally competitive space ecosystem, ISRO said.

Start-ups, industry, and academia are being encouraged to participate across the space value chain.

ISRO has already transferred multiple technologies to industry, it said. Such transfers do not mean the agency is withdrawing from those areas.

Instead, they allow industry to produce mature technologies at scale, commercialise them, and take them to global markets. This also allows ISRO's scientific and technical workforce to focus on advanced research and complex national missions.

The space agency described the emerging model as an "ISRO-led national space ecosystem."

ISRO To Focus On Frontier Technologies

The agency said its role would increasingly focus on frontier research and advanced technologies.

These include human spaceflight, next-generation launch systems, deep-space and planetary missions and strategic national capabilities. "It will continue developing cutting-edge technologies, including advanced payloads for communication, navigation, and Earth observation, sensors, propulsion systems and other critical technologies.

At the same time, mature launch vehicles, routine satellites, and other established systems can increasingly be produced by industry or public sector undertakings through competitive processes.

The aim is to free up ISRO's resources and scientific manpower for newer technologies and missions, while private industry provides investment, manufacturing capacity, and scale.

Space Station And Moon Mission

The shift, the ISRO added, was important for India's Space Vision 2047.

The country's ambitions include establishing the Bharatiya Antariksh Station by 2035 and sending an Indian crewed mission to the Moon by 2040.

India also plans to develop next-generation and reusable launch systems and pursue sustained lunar and planetary exploration.

"These are technologically demanding missions that require ISRO to remain focused on advanced research and capabilities that cannot simply be substituted by commercial activity," the agency said.

Under the new institutional structure, the Department of Space will provide overall policy direction. ISRO will remain responsible for advanced R&D, technology development, and national missions.

IN-SPACe will facilitate and authorise participation by non-government entities, while NewSpace India Limited will handle commercialisation and industry-led use of mature capabilities.

Industry and start-ups will provide investment, innovation, manufacturing capacity, and access to markets.

ISRO also said ownership and control of critical national space infrastructure and strategic capabilities would continue to remain with the government. Private participation in operations and services would be allowed where appropriate, subject to national security, safety, and regulatory requirements.

450-Plus Space Start-ups

India had only a handful of space start-ups in 2020. It now has more than 450 working across launch vehicles, satellites, propulsion, ground systems, Earth observation, communications, and space applications.

The space agency said this had brought additional investment, talent, and technological innovation while strengthening India's overall space capability.

India's space economy is currently estimated at around $8.4 billion. The country aims to increase its share of the global space market to $44 billion by 2033.

"That scale cannot be achieved through government resources and ISRO’s manpower alone," the agency said, adding that private capital, industrial capacity, entrepreneurship, and access to global markets would be needed to reach that target.

ISRO's statement came two days after nine employee associations wrote to Narayanan on September 4.

The associations questioned the proposed transfer of manufacturing and operational functions to private entities. They also raised concerns about ISRO's future role, the impact on serving employees, and future recruitment.

"Private participation in defined commercial activities can coexist with a strong, publicly-owned ISRO," the associations said.

But they warned against any policy that could reduce ISRO to a "residual R&D boutique" while the realisation of launch vehicles and operation of launch infrastructure moved out of public hands.

"Technology developed by ISRO is a national asset. Its transfer must be transparent, accountable, and consistent with strategic, safety, and employment considerations -- not presented to employees through newspaper reports," they said.