India's space sector pivot as private players reshape orbit

For decades, the global space narrative was largely a duopoly, dominated first by the United States and then the Soviet Union, with Europe and a rising China slowly entering the arena. India, through its Indian Space Research Organisation (ISRO), carved a distinct niche—launching satellites and interplanetary probes with precision and frugality. But while ISRO led these missions with remarkable efficiency, the effort was almost entirely state-driven.

That is changing.

India’s space sector is undergoing a fundamental transformation. What was once a public-led domain is now being restructured through a focused public–private partnership (PPP) model. The shift is strategic and deliberate, aimed not just at internal expansion but at repositioning India in the global space economy.

From Monopoly to Multi-Stakeholder Space

ISRO has long been the singular force in Indian space—designing, building, launching, and operating missions. Its milestones, including the Chandrayaan series and the Mars Orbiter Mission (Mangalyaan), showcased Indian ingenuity. However, as the global space economy expands—driven by commercial innovation—India has recognised that a single government agency, however capable, cannot capture the full scope of emerging opportunities.

Reforms began taking shape after 2014, culminating in the Indian Space Policy 2023. This policy formally empowered the private sector, moving it from contractor to co-creator and independent operator. The objective is to grow India’s space economy to USD 44 billion by 2033 and capture an 8% share of the global market.

Enabling this is a model built on government facilitation, regulatory clarity, and trust in enterprise. Key institutions include the Indian National Space Promotion and Authorisation Centre (IN-SPACe), which streamlines regulations and grants private access to ISRO’s infrastructure, and NewSpace India Limited (NSIL), ISRO’s commercial arm that handles technology transfers and launch services. Together, they are converting decades of state-led knowledge into a platform for private innovation.

The Rs 1,200 Crore PPP Breakthrough Deal

If there is one story that encapsulates this seismic shift, it is the recent Rs 1,200 crore (approximately USD 137 million) Earth Observation (EO) satellite constellation project. Awarded by IN-SPACe to a consortium led by Bengaluru-based Pixxel.

What stood out was the ‘zero-bid’ proposal by the Pixxel-led consortium, which included PierSight Space, Satsure Analytics India, and Dhruva Space. Jointly, the companies proposed to fully fund the project without seeking government financing. This move reflects a strong belief in the long-term commercial viability of India’s space sector.

Awais Ahmed, Founder and CEO of Pixxel, described it as a structural shift. “This PPP marks a fundamental change in India’s space sector. It shows we are ready to compete globally in both technology and business models,” he said.

The 12-satellite constellation is expected to include a mix of high-resolution, multispectral, hyperspectral, and Synthetic Aperture Radar (SAR) payloads. The aim is not only to capture high-quality data but also to strengthen data sovereignty—building indigenous capabilities in the growing global geospatial intelligence market.

What Private Players Bring to the Table

The shift towards private participation is grounded in a clear recognition of what these players bring—agility, risk tolerance, and a sharp customer focus.

“Private industry brings speed, flexibility, and access to capital,” said Ahmed. “ISRO remains the scientific and technical backbone, but startups can assume commercial risks, quickly iterate, and build customer-centric products. The PPP model allows both sectors to complement each other and create outcomes that neither could achieve alone.”

Krishanu Acharya, CEO and Co-Founder of Suhora Technologies, agreed. “India’s space startup ecosystem is thriving, thanks to enabling policies and regulatory support from IN-SPACe. Recent changes have lowered entry barriers, opened access to satellite data, and fostered collaboration.”

Suhora is building advanced Earth observation solutions with global relevance. According to Acharya, the ease of doing business has improved, and India is becoming a hub for space-tech entrepreneurship. “Agile startups can now transform their vision into reality and contribute meaningfully to national space goals,” he said.

Expanding Reach Beyond Satellite Ventures

This transformation is not limited to Earth observation. India’s private sector is rapidly diversifying, expanding into areas once reserved exclusively for national agencies. We are seeing the emergence of indigenous launch capabilities.

Companies like Agnikul Cosmos and Skyroot Aerospace are not just dreaming of rockets; they have signed framework agreements with IN-SPACe, have access to ISRO facilities, and are developing their own launch vehicles. NSIL is even exploring the production of ISRO’s heavy-lift launcher, the LVM3, under a PPP model.

Lt Gen AK Bhatt (retd), Director General of Indian Space Association (ISpA), believes this is crucial for India’s global standing. “Their agility, customer-centric approach, and technological ingenuity accelerate development cycles and fuel competitiveness against international giants, something a government R&D organisation, by its very structure, cannot fully replicate,” he said.

The future of India’s space sector is no longer a solo journey. With over 300 space startups now active, a clear policy direction in place, and institutional frameworks enabling access, the ecosystem is becoming both vibrant and globally competitive.

ISRO’s legacy laid the foundation, but it is the private sector—agile, innovative, and willing to take risks—that is now propelling India to new heights. Once viewed as supporting actors, private firms are increasingly taking centre stage.