India’s space story has moved beyond government-led exploration into a dynamic era of private enterprise and innovation. How Public-Private Partnerships (PPPs) are transforming ISRO’s legacy into a thriving space economy, unlocking talent, technology, and global opportunity
Sudipta Subham Sahu
India’s odyssey into space has long been shaped by the stoic brilliance of ISRO—a government-run innovation engine, famed for achieving interplanetary milestones on a shoestring budget. With a blend of scientific precision and frugal ingenuity, ISRO transformed India from a developing nation into a respected spacefaring power.
From launching Aryabhata in 1975 to capturing the world’s imagination with the low-cost success of Mangalyaan and the recent triumphs of Chandrayaan, the organization has built the nation’s cosmic reputation brick by frugal brick. It has consistently turned limitations into launching pads, proving that ambition doesn’t always need opulence—only vision, patience, and perseverance.
But space is no longer solely a scientific endeavor—it’s a thriving economy. Across the world, the space industry has been opened up to private enterprise. From Europe and the United States to China, Public-Private Partnerships (PPPs)—joint ventures between government space agencies and private stakeholders—have tapped a new generation of innovation, pace, and scale.
ISRO, even as one of the most effective and successful space organizations globally, has traditionally operated under a tightly managed, government-funded model. India only recently started to explore structured partnerships with the private sector. This shift is a pivot point—a pivotal one, not merely in the way India makes rockets but in who makes them and why.
Monopoly to Momentum
For much of its history, India’s space ambitions were managed entirely by ISRO, which oversaw everything from R&D to launch. It worked—brilliantly so—but as global competitors turned to agile, investor-backed companies like SpaceX and Blue Origin, the writing was on the wall. India needed a new kind of engine.
That engine came in the form of reform. In 2020, the Indian government launched a set of policy reforms aimed at opening ISRO’s doors to private partners. Organizations such as IN-SPACe (Indian National Space Promotion and Authorization Center) and NSIL (NewSpace India Limited) were established to grant access to ISRO’s infrastructure and provide a clear regulatory pathway to space entrepreneurs.
The outcome has been rapid and encouraging. Such startups as Skyroot Aerospace, which in 2022 sent India’s first private rocket, Vikram-S, into space; Agnikul Cosmos; and Pixxel have emerged. They’re not working alone; they’re building within the ISRO ecosystem, drawing on its heritage while introducing new agility and ambition.
This dynamic synergy of state institutions and private innovation has firmly positioned India on the international map—not merely as a spacefaring nation, but as an emerging player in the business space race.
Establishing Trust
This change isn’t symbolic. It’s economic. The space economy of India has increased from $7 billion in 2020 to more than $10 billion in 2024, and private investment is at the forefront. Venture capital firms, finding credibility in ISRO-funded ventures, have invested more than ₹1,000 crore ($120M) in Indian space startups in the last five years.
The advantages are two-way. The private players obtain access to cutting-edge infrastructure and technical guidance, while ISRO reduces costs and shortens timelines. For example, missions such as PSLV-C52 experienced as much as 30% cost savings through outsourced production. In contrast, ISRO’s revenue from commercial activity has risen from ₹1,200 crore in 2018 to more than ₹2,000 crore in 2023—a telling indication of how PPPs are releasing new financial paradigms.
What was historically a monolithic state-owned entity is now transitioning into a hybrid shared risk and shared reward model—where government heritage meets startup spirit.
Retaining Brilliance
Maybe the greatest impact of PPPs is visible not in space, but down here on Earth—in the hearts and minds of India’s top talent. For years, engineers from IITs, NITs, and IISc watched their careers soar overseas, not through any desire to be away, but simply because India did not have the opportunities to make them stay.
That’s changing
Startups like Skyroot and Pixxel now offer high-paying, intellectually challenging roles that rival Silicon Valley gigs. These companies, backed by both ISRO and international investors, are not only retaining Indian talent—they’re luring it back. Founders and early team members are often returnees from MIT, Stanford, and Caltech, drawn home by the chance to build, launch, and lead.
By 2030, India’s space industry is expected to create 85,000+ high-paying jobs. These are not just employment opportunities—they’re dreams rooted in the earth they once abandoned.
Uniquely Indian
India isn’t imitating the world—it’s evolving it. Sure, NASA collaborations gave birth to SpaceX and saved billions. Sure, Europe’s ESA is backing companies like OHB Systems and Isar Aerospace. And even China, tightly controlled by the state, has made space for private companies like iSpace and LandSpace to grow.
But India’s template is its own. ISRO doesn’t stand aside—it stands forward as a facilitator. IN-SPACe does not act merely as a regulator but as a facilitator. The intention isn’t complete privatisation, but a symphony hybrid—where state guidance exists alongside market-driven innovation.
However, there are challenges still to overcome. The Space Activities Bill—the key to explaining IP rights, insurance norms, and dispute settlement—is yet to be enacted. The absence of a developed space insurance market and bureaucratic reluctance in some corners continue to impede progress. But the overall direction is obvious: India is not tiptoeing into the future—it is sprinting.
Earthly Benefits
Whereas launches and rockets steal the news headlines, there may be a greater opportunity in the so-called downstream sector—leveraging space tech to address needs back on this planet.
Entities like SatSure already are harnessing satellite data to assist insurance companies in assessing damage to crops and informing farm policy. Equivalent partnerships can remake climate prediction, urban planning, disaster response, and rural broadband provision.
And with India’s strong IT and AI ecosystem, there’s vast potential to combine data analytics with space technology—tapping a new frontier in geospatial intelligence, logistics efficiency, and digital infrastructure.
The space sector is a multiplier economy, according to economists—every rupee invested can generate ₹3–₹7 in indirect economic returns, from jobs and innovation to industrial spillovers.
India’s PPP experiment is yielding initial green shoots of success, but its long-term contribution will rest on steady implementation.
To create a robust, globally competitive space economy, the government needs to legislate clarity, de-risk startups, and work internationally, which will help the Indian space sector leap to the future, where the space economy not only helps solve problems but also becomes a machinery that largely contributes to the Nation’s GDP.
If handled correctly, India will not just retain its talent at home—but also sell its technology, satellites, and solutions to the globe.
Significant Trajectory
If the last decade has been one of demonstrating India’s space prowess, the future decade will be one of commercializing it—efficiently, inclusively, and sustainably. Public-private partnerships, if handled with care, can be India’s springboard to global preeminence in aerospace innovation, not just by way of satellites and rockets, but by creating a self-sustaining knowledge economy, employment, and world influence.
The future is no longer light-years distant. It’s being launched—by ISRO, by the Indian private sector, and by young engineers who now have the luxury of creating rockets not only for other nations but for themselves.
And in that future, perhaps, may lie the most significant trajectory of all—not merely of orbiters or payloads—but of a nation’s brightest minds, at last remaining at home to reach the stars.
(The writer is a student & blogger. Views are personal.)
