CHENNAI: With satellite and rocket production now outsourced and government satellites managed by NewSpace India Ltd (NSIL), questions are being raised about the future role of the Indian Space Research Organisation (ISRO) and whether it needs a major reshuffle within the Department of Space (DoS).
In a recent, widely debated move, the private space regulator Indian National Space Promotion and Authorisation Centre (IN-SPACe) announced that a consortium led by PixxelSpace India — including Piersight Space, Satsure Analytics India, and Dhruva Space — will build and operate India’s first fully indigenous commercial earth observation (EO) satellite system. Traditionally, EO satellites were ISRO’s domain.
Meanwhile, ISRO’s own NavIC (Navigation with Indian Satellite Constellation) system remains incomplete, raising concerns about whether private firms will eventually supply India’s positioning, navigation, and timing (PNT) services. Start-ups are already stepping in: AeroDome Technologies, founded by IIT Madras alumni, is developing a navigation satellite constellation in low Earth orbit.
“Location and time are the foundations of the modern connected world. Every device, when switched on, asks two questions: when and where,” said Vibhor Jain, Co-Founder of AeroDome Technologies.
However, retired ISRO officials argue that only communication satellites hold real commercial potential, while EO and navigation services may not be profitable. They suggest that if ISRO had set up a dedicated satellite communications company earlier, the space economy could have looked very different today.
On the rocket side, Hindustan Aeronautics Limited (HAL) recently won a ₹511 crore contract to build ISRO’s Small Satellite Launch Vehicle (SSLV). NSIL also signed an ₹860 crore deal to procure five Polar Satellite Launch Vehicles (PSLVs) from a HAL–Larsen & Toubro consortium, with ISRO providing the technology. Whether ISRO will continue outsourcing PSLV production after these five units remains uncertain. Last year, NSIL also invited bids to manufacture ISRO’s heavy-lift rocket LVM3 under a public-private partnership model.
With a sanctioned strength of 17,000 (around 16,000 currently employed), many now ask whether ISRO should shift focus entirely to research, leaving production to industry. One proposal is to spin off ISRO’s divisions — rocket engines, satellites, payloads, integration, launch services, and tracking — into separate government-owned companies, with NSIL acting as the procurement and marketing arm. This would mirror India’s nuclear sector, where research bodies like BARC focus on R&D while NPCIL handles power generation.
But ISRO never had dedicated production facilities, said Dr. S. Somanath, former ISRO Chairman and Secretary, DoS. “Most production has always been done in industry or under GOCO (government-owned, contractor-operated) models. ISRO was created for R&D, not manufacturing. What ISRO does is development, system engineering, and integration — which no one else can.”
Retired ISRO Director Tapan Misra added that only 20–30% of ISRO’s workforce is engaged in research, with most tied up in production and operations. “ISRO missed the bus on kerosene and methane-powered rockets. Much of the work is repetitive and should be moved out to industry. The future lies in advanced propulsion and deep R&D.”
Misra and others argue that production of existing rockets should remain with PSUs like HAL until private rocket makers mature. ISRO staff could be redeployed — younger scientists encouraged toward research or start-ups, while experienced engineers support industry through deputation. This way, ISRO’s expertise continues to strengthen India’s space ecosystem.
Industry voices also caution against leaving production entirely to private firms. “Just as BSNL remains a government-controlled telecom backbone in times of need, India must retain public sector capacity in rockets and satellites,” Misra said.
Looking ahead, experts argue that India must clearly define its space sector model:
- the US model (strong government–private collaboration),
- the Chinese model (military–civil integration),
- the European model (multi-nation collaboration with autonomy focus), or
- India’s traditional model (government control with public sector dominance, now opening to private players).
“A hybrid of all three won’t work,” said a retired senior ISRO official.
