A New Policy Frontier Opens
For over fifty years, the Indian Space Research Organisation (ISRO) was the sole custodian of India's space ambitions. That paradigm shifted dramatically starting in 2020, culminating in the Indian Space Policy 2023. This landmark policy framework officially
opened the entire space sector to private companies, or Non-Governmental Entities (NGEs). The goal was to transform the industry from a government-led program into a dynamic, multi-player ecosystem. To facilitate this, the government established the Indian National Space Promotion and Authorisation Centre (IN-SPACe) as a single-window agency. IN-SPACe's mandate is to promote, authorise, and supervise private space activities, including providing access to ISRO's world-class facilities and technical expertise. This has laid the groundwork for a market-driven approach, aiming to grow India's share of the global space economy from its current value of around $9 billion to a projected $44 billion by 2033.
The Trailblazers: Skyroot and Agnikul
Out of the nearly 440 space startups that have emerged, two have captured the national imagination by successfully launching their own vehicles. Hyderabad-based Skyroot Aerospace, founded by former ISRO scientists, made history on July 18, 2026, with the successful orbital launch of its Vikram-1 rocket. This made India one of the few countries with a private company capable of reaching orbit. The company is already preparing for its next mission, signaling a move towards a regular launch cadence. Meanwhile, Chennai-based Agnikul Cosmos, incubated at IIT-Madras, has pioneered innovation with its Agnibaan rocket, which is powered by the world's first single-piece 3D-printed engine. The company successfully flew its sub-orbital technology demonstrator, 'Agnibaan SOrTeD', in May 2024 from India's first private launchpad. These successes are not just technical achievements; they are powerful proofs-of-concept for the entire private sector.
The Small Satellite Gold Rush
The primary driver for this new market is the explosive global demand for small satellite launches. Satellites weighing under 500 kg are increasingly used for everything from Earth observation and climate monitoring to broadband internet constellations and the Internet of Things (IoT). Previously, small satellite operators had to 'rideshare' on large rockets, often facing long waits and compromises on their desired orbit. Private Indian companies like Skyroot and Agnikul are developing small-lift launch vehicles, like the Vikram-I, designed specifically for this market. They offer dedicated, on-demand launches that are faster, more flexible, and potentially more cost-effective. This positions India as a highly competitive launch hub for the burgeoning global small satellite industry, which is a key component of the projected five-fold growth in the domestic space economy by the next decade.
A New Role for ISRO
The rise of private players does not mean the end of ISRO's relevance. Instead, its role is evolving. By handing over the routine manufacturing and operation of proven systems like the Polar Satellite Launch Vehicle (PSLV) to industry, ISRO can dedicate its resources to a more ambitious agenda. This includes deep-space scientific missions, advanced research and development, and flagship national projects like the Gaganyaan human spaceflight program, setting up an Indian space station by 2035, and landing an astronaut on the Moon by 2040. The relationship is symbiotic: private companies leverage ISRO's decades of experience and infrastructure, while ISRO benefits from a robust industrial ecosystem that can scale up production and drive down costs. This collaborative model, where ISRO acts as a mentor and R&D powerhouse, is crucial for realising India's long-term space vision.
