ISRO to transfer launch vehicle manufacturing to private sector

The Indian Space Research Organisation (ISRO) is undergoing a major structural shift by transitioning the manufacturing of commercial launch vehicles to the private sector. Under this new policy, ISRO will cease direct production of rockets such as the Polar Satellite Launch Vehicle (PSLV), Launch Vehicle Mark-3 (LVM3), and the Small Satellite Launch Vehicle (SSLV). Instead, end-to-end assembly and serial production will be handled by domestic industrial consortia, including firms like Hindustan Aeronautics Limited (HAL) and Larsen & Toubro (L&T).

This pivot allows ISRO to refocus its resources on advanced space exploration, deep-space missions, and technology development. The Indian space economy, which has reached $9 billion, is projected to grow to $40–45 billion over the next decade, supported by a surge in space startups and increased private investment.

The move has sparked political debate. The Congress party has criticized the government’s “aggressive privatisation agenda,” alleging it could “strangulate and emasculate” ISRO by limiting its core capabilities. Conversely, the BJP has defended the strategy, stating that opening the sector expands India’s space ambitions and fosters a robust national ecosystem of startups and private developers.