PSLV-C49 lifts off from Sriharikota. (Via: ISRO)
New Delhi: The Indian Space Research Organisation (ISRO) is set to gradually move away from the routine manufacturing of launch vehicles, with industry taking over the production of mature launch systems as the space agency focuses more on research and advanced technologies.
IN-SPACe Chairman Pawan Kumar Goenka announced the shift while speaking at the Business Today India @ 100 Economy Summit on August 21. According to Business Today, Goenka said ISRO’s role would increasingly focus on research, advanced technologies, scientific missions and space infrastructure, while routine manufacturing moves to industry.
“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 said, according to India Today.
The move does not mean ISRO is withdrawing from India’s launch programme. Instead, the agency is expected to increasingly develop new technologies and transfer mature systems to industry for production and commercial use.
SSLV transfer has already begun
The transition has already started with the Small Satellite Launch Vehicle (SSLV), whose technology was transferred to Hindustan Aeronautics Limited (HAL) under a technology transfer agreement signed in September 2025.
ISRO, NewSpace India Limited (NSIL), IN-SPACe and HAL signed the agreement to enable the transfer of SSLV technology to HAL for industrial production and commercialisation, according to ISRO.
Goenka said the first SSLV launch by HAL is expected in September 2027. He also said an independent launch centre is being developed, with its operator expected to be finalised within the next four to five months, according to NewsGram.
PSLV productionisation is already underway
The transition is not starting from scratch for the Polar Satellite Launch Vehicle (PSLV). ISRO has already been working to productionise the PSLV through industry.
In 2023, ISRO said NewSpace India Limited (NSIL) had placed an order with an L&T-HAL consortium to realise five PSLVs as part of the productionisation programme.
ISRO has said the regular production of PSLVs can be handled by industry, allowing the space agency to focus its resources on advanced projects and retain functions such as mission analysis, planning and configuration control.
The next stage is expected to expand industry participation further. Goenka said the upcoming technology transfer processes for PSLV and LVM3 will involve the private sector, with PSUs not expected to be eligible, according to India Today.
LVM3 is also part of the transition
The next major step involves expanding industry participation in the PSLV and LVM3 programmes.
While PSLV productionisation through industry is already underway, LVM3, India’s heavy-lift operational launch vehicle, is also being considered for greater industry participation as part of the wider transition.
The proposed industrialisation of LVM3 would represent a major expansion of the private sector’s role in India’s launch industry.
However, the transition should not be interpreted as ISRO immediately handing over all LVM3-related work. ISRO will continue to work on advanced and specialised technologies and missions.
ISRO to focus on research and advanced technologies
Under the emerging model, ISRO will increasingly concentrate on developing new technologies, scientific missions, specialised satellites and advanced space infrastructure.
Once technologies become mature, they can be transferred to companies for commercial production and operations.
Goenka said 120 technologies developed by ISRO have already been transferred to the private sector, highlighting the broader technology transfer process underway in India’s space industry, according to India Today.
The shift would give ISRO greater room to concentrate on research and development, scientific missions, new technologies and specialised space systems, while industry handles the production of mature technologies.
Part of India’s larger space sector expansion
The move comes as India seeks to significantly expand its commercial space industry.
Goenka said India is targeting an increase in the country’s space economy from around $8 billion to $44 billion by 2033. He identified government demand, wider use of space technology by industries outside the traditional space sector and expansion into international markets as key drivers of this growth, according to Business Today.
The government is also emerging as an important customer for private space companies. Goenka said the Department of Defence has an order for 31 satellites from private companies, while another 21 satellites under the wider 52-satellite programme are expected to be built by ISRO, Business Today reported.
A shift from government production to industry
The proposed change represents a major shift in the way India’s space programme operates.
For decades, ISRO has been responsible for designing, developing and manufacturing its launch vehicles. Under the new model, the agency will increasingly develop and demonstrate technologies before handing mature systems to industry for production.
The objective is to allow private companies to build manufacturing capacity and commercial launch services, while ISRO concentrates its resources on technologies and missions that require advanced research.
The transition is therefore not an exit by ISRO from India’s launch programme. Instead, it marks a gradual division of responsibilities, with ISRO focusing more on advanced technologies, research and specialised missions while industry takes a larger role in producing mature launch systems.
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