Amid media reports and queries by employee associations at the Indian Space Research Organisation (ISRO) over ISRO undergoing privatisation, the space agency has issued an extensive clarification on 6th September. ISRO addressed all the queries about the importance of ISRO in the future after the opening of the space sector to private players. ISRO called the claims that attempts are underway to privatise ISRO or reduce its role “completely baseless and incorrect”.
“ISRO will never be privatised”: ISRO dismisses privatisation claims
In a statement issued on X, ISRO said, “ISRO’s Next Chapter: Leading India’s National Space Ecosystem. There has been considerable reporting in parts of the media around the future role of ISRO, including speculations and misinformation that there is an attempt to privatise ISRO or reduce its role. These assertions are completely baseless and incorrect. We wish to categorically state that ISRO will neither be privatised nor will its importance be diminished.”
The premier space agency stated that it will 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.”
Participation of private sector in space will not reduce ISRO’s role
Addressing how the entry of private players in the space sector will impact ISRO and its role in the future, ISRO said that Participation of the private sector in space is not about reducing ISRO’s role. It said that the entry of private players will enable ISRO to focus even more strongly on the next generation of India’s space programme, while industry scales mature technologies and capabilities.
“What is changing is not the importance of ISRO, but the scale and structure of India’s space ecosystem,” ISRO said.
Contrary to the narrative created by several media reports, there is no tussle between ISRO and private players looking forward to entering India’s space sector.
“The space-sector reforms initiated since 2020 and institutionalised through the Indian Space Policy 2023, along with progressive liberalisation of FDI policy, aim to create a larger, stronger and globally competitive Indian space ecosystem,” ISRO said.
ISRO further stated that participation of industries, start-ups and academia is not about diminishing ISRO’s importance but about complementing and multiplying ISRO’s capabilities.
“Industry, start-ups and academia are being enabled to participate across the space value chain, complementing and multiplying ISRO’s capabilities. The reforms should therefore be seen as ecosystem expansion and capability multiplication, not privatisation,” it said.
ISRO-led national space ecosystem: Mature tech transfer does not mean ISRO is withdrawing from that domain
Speaking about multiple mature technology transfers to private players and the misinterpretation that it amounts to ISRO’s withdrawal from that domain, ISRO said that this interpretation is devoid of factual merit.
“As India’s industrial and technological capabilities have grown, mature and scalable activities can increasingly be undertaken by Indian industry. ISRO has already transferred around multiple technologies to industry. Transferring a mature technology does not mean ISRO is withdrawing from that domain,” it said.
Clarification regarding media reports on concerns relating to Space Sector Reforms and the role of ISRO
— ISRO (@isro) September 6, 2026
ISRO’s Next Chapter: Leading India’s National Space Ecosystem
There has been considerable reporting in parts of the media around the future role of ISRO including speculations…
Contrary to the ‘withdrawal’ narrative, these tech transfers “enable large-scale production, commercialisation, innovation and access to global markets while allowing ISRO’s scientific and technical manpower to concentrate on advanced research, next-generation technologies and complex national missions.”
“The transition is therefore towards an “ISRO-led national space ecosystem,” ISRO declared.
ISRO to focus on frontier R&D, advanced tech, human spaceflight and development of strategic national capabilities
Contrary to the ‘ISRO to lose its significance’ bogey, ISRO indicated that its role is going to become even more crucial and diverse in the coming times as the space agency will bolster its role in frontier R&D, advanced technologies, human spaceflight, next-generation launch systems, deep-space and planetary missions.
“ISRO’s role will progressively strengthen in areas where its scientific expertise matters most: frontier R&D, advanced technologies, human spaceflight, next-generation launch systems, deep-space and planetary missions and strategic national capabilities,” it said.
ISRO will continue developing cutting-edge technologies, including advanced payloads for communication, navigation and Earth observation, sensors, propulsion systems and other critical technologies.
It further emphasised that mature and routinely manufactured systems can increasingly be scaled through industry. ISRO further stated that production of mature launch vehicles, routine satellites and other established systems “can increasingly be undertaken by industry or PSUs through appropriate competitive processes.”
“This allows ISRO to devote more resources and scientific manpower to the next generation of technologies and missions, while the wider ecosystem provides the investment, manufacturing capacity and scale required by an expanding national space programme,” it added.
ISRO opens up on the “Next Frontier: Space Station, Moon and Planetary Exploration”
ISRO said that the transition of India’s space sector with the entry of private players is particularly significant in view of the Space Vision 2047.
“India’s ambitions include establishing the Bharatiya Antariksh Station by 2035, undertaking an Indian crewed mission to the Moon by 2040, developing next-generation and reusable launch systems, pursuing sustained lunar and planetary exploration, and establishing India as a major global space power,” it said.
The ISRO asserted that these are technologically demanding missions that require ISRO to focus on advanced research and capabilities that cannot be substituted by commercial activity.
“The objective is therefore to enable industry to scale mature capabilities while ISRO pushes India towards the next technological frontier. The new institutional architecture gives each part of the space ecosystem a distinct role,” it said.
ISRO remains at the core organisation while Department of Space provides overall policy direction
ISRO stated that the Department of Space provides overall policy direction and ISRO remains the core organisation for advanced R&D, technology development and national missions.
“IN-SPACe facilitates and authorises the participation of non-government entities, while NSIL undertakes commercialisation and industry-led utilisation of mature capabilities. Industry and start-ups contribute investment, innovation, manufacturing capacity and market access,” it said.
Regarding the ownership and control of critical national space infrastructure and strategic capabilities, ISRO said that these “will continue to remain with the Government.”
It added that private participation in operations and services will be enabled where appropriate and will remain subject to national-security, safety and other regulatory requirements.
ISRO further clarified that strategic and nationally critical capabilities “will continue to be governed by security, safety, quality and national-interest considerations.”
Highlighting how private participation in the space sector post 2020 reforms is increasing and thriving, ISRO said, “From only a handful of Indian space start-ups in 2020, India today has more than 450, working across launch vehicles, satellites, propulsion, ground systems, Earth observation, communications and space applications.”
Indian space economy aspiration to grow from $8.4 billion to $44 billion by 2033 requires private participation: ISRO
ISRO also emphasised that while the Indian space economy is currently estimated at around $8.4 billion, India aims to increase its share of the global space market to $44 billion by 2033.
For this, government resources and ISRO’s manpower alone are insufficient. “It requires private capital, industrial capacity, entrepreneurship and global market access. A stronger Indian space industry can augment ISRO’s capabilities, strengthen domestic supply chains, attract talent and investment, increase production and competitiveness, and enable India to capture a larger share of the global space economy,” ISRO clarified.
The Next Frontier: Space Station, Moon and Planetary Exploration
— ISRO (@isro) September 6, 2026
This transition is particularly important in the context of Space Vision 2047. India’s ambitions include establishing the Bharatiya Antariksh Station by 2035, undertaking an Indian crewed mission to the Moon by…
ISRO scientists sought clarity over ‘privatisation’
The ISRO clarification comes amidst media reports, speculations and misinformation by the detractors of the Modi government as well as a written query by nine employee bodies representing staff across major ISRO centres to ISRO Chairman and Department of Space Secretary V Narayanan.
In a five-page representation, dated 4th September, employee associations from centres including the Vikram Sarabhai Space Centre (VSSC), Satish Dhawan Space Centre (SDSC), UR Rao Satellite Centre (URSC), Liquid Propulsion Systems Centre (LPSC), Space Applications Centre (SAC), National Remote Sensing Centre (NRSC) and ISRO Propulsion Complex (IPRC) sought clarification on ISRO’s future role amidst ‘privatisation’ claims.
How India’s space sector was opened for private players
While the idea was taken into consideration before also, the Modi government’s push to bring private companies into the space sector began explicitly in 2020 as part of the broader economic reforms announced during the Covid-19 pandemic.
In May 2020, the fourth tranche of the Atmanirbhar Bharat package was announced by Finance Minister Nirmala Sitharaman. The minister said that the government wanted private companies to become partners in India’s space journey.
“The Indian Space Research Organisation has brought a lot of laurels to the country. However, the private sector is also doing a lot of work in the arena now. We want the Indian Private sector to be a co-traveller in India’s space sector journey,” Sitharaman said.
The government announced that private companies would be allowed to use ISRO facilities and other relevant assets to improve their capabilities. The government’s intent was never to fully privatise ISRO but to make better use of India’s existing space infrastructure and allow startups and private companies to develop their own capabilities under ISRO’s guidance.
For private participation, IN-SPACe was created as a regulatory and facilitation mechanism, while NewSpace India Limited (NSIL) has a commercial role in taking ISRO-developed technologies and systems to industry.
The Indian Space Policy 2023 subsequently allowed private companies a wider role across the space value chain, including the development and operation of space systems.
