India expands private sector roles in space and defence

India is undergoing a structural shift in its high-technology sectors, moving toward increased private sector participation in both space and defence industries. In the space sector, the government aims to grow the economy from $8.4 billion to $44 billion by 2033. While the Indian Space Research Organisation (ISRO) has clarified it will not be privatised, the industry requires more patient capital, testing facilities, and long-term customers to support the 400-plus registered space start-ups.

Simultaneously, India is privatising parts of its conventional missile sector to build strategic autonomy and industrial resilience. The government has approved the transfer of Defence Research and Development Organisation (DRDO) technologies to qualified companies, including both public and private firms. This move aims to dilute the near-monopoly of Bharat Dynamics Limited in tactical missiles and allow private firms to participate in the production of surface-to-air, anti-ship, and anti-tank systems. While nuclear-capable strategic systems like the Agni series remain under strict state control, the broader reform seeks to ensure India can rapidly replenish weapon stockpiles during potential conflicts.