Isro will not make any launch vehicle, all tech will go to private sector

India’s space agency, the Indian Space Research Organisation (ISRO), is undergoing a major restructuring that will see it relinquish control over the design and production of launch vehicles and routine satellites, shifting these responsibilities entirely to the private sector. This marks a pivotal moment in the evolution of India’s space program, which has long been synonymous with state-led innovation and self-reliance. According to IN-SPACe chairman Dr. Pawan Goenka, the transition is already well underway and aims to position ISRO as a leading force in research, advanced technology development, and specialized scientific missions. Goenka outlined the changes during his address at the Business Today's India @ 100 Economy Summit, emphasizing that ISRO will no longer manufacture any launch vehicles or satellites. Instead, these tasks will be handled exclusively by private firms or public sector units. “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 stated clearly, signaling a definitive shift in the agency’s core functions. This strategic pivot began with the Small Satellite Launch Vehicle (SSLV), whose technology and production rights were recently transferred to Hindustan Aeronautics Limited after a competitive bidding process. The next steps involve transferring the Polar Satellite Launch Vehicle (PSLV) and the LVM3, India’s most powerful operational rocket, to private entities. Notably, unlike the SSLV case, public sector companies will not be eligible to bid for these upcoming transfers, ensuring that private industry takes center stage in this new era of space commerce. Under this new framework, ISRO’s role will increasingly mirror that of a research and development organization. It will concentrate on advancing cutting-edge technologies, conducting complex scientific missions, and building specialized infrastructure, areas where private companies may lack the capacity or incentive to invest independently. Once these technologies reach maturity, they will be handed over to the private sector for commercial applications. Goenka highlighted that ISRO has already transferred 120 technologies to the private sector, laying the groundwork for this transition. Additionally, the government plans to entrust the operation of a new launch center to private industry, with the selection of an operator expected to occur within the next four to five months. These developments align with India’s ambitious goal to grow its space economy from approximately $8 billion today to $44 billion by 2033. To achieve this growth, Goenka identified three key drivers: sustained government demand, increased utilization of space technologies by non-traditional sectors, and expansion into global markets. He emphasized that the government must serve as an anchor customer to ensure consistent demand for space-related products and services. In support of this vision, the Department of Defense has already commissioned 31 satellites from private firms, while ISRO is anticipated to construct 21 additional satellites under the same initiative. This collaboration underscores the growing integration of private enterprise into India’s national security and technological landscape. India is also exploring an ownership-based commercial model, wherein private companies would possess satellites and other space assets, enabling them to generate revenue through data and service provision. For ISRO, this means stepping back from the daily manufacturing processes that historically defined its achievements and instead concentrating on pioneering the technologies and missions that will shape India’s future in space exploration and utilization.