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Sep 29 2026
India needs to build a space industry without weakening ISRO
Overview
The article “India Needs to Build a Space Industry Without Weakening ISRO” argues that India should encourage private participation in the space sector while protecting the institutional knowledge, technical capabilities and human capital developed by the Indian Space Research Organisation.
Author Sundeep Khanna cautions that transferring mature technologies and experienced personnel to private companies without an appropriate value-sharing framework could weaken ISRO. The article proposes that ISRO and its scientists should retain a meaningful economic interest in technologies commercialised by private companies.
Details
Article: India Needs to Build a Space Industry Without Weakening ISRO
Author: Sundeep Khanna
Publication date: 29 September 2026
Central argument: India should develop a globally competitive private space industry without diminishing ISRO’s research capacity, institutional knowledge or strategic importance.
ISRO’s achievements: The organisation is credited with internationally recognised programmes such as the Mars Orbiter Mission, Chandrayaan-3, the Polar Satellite Launch Vehicle and multiple satellite applications.
Cost effectiveness: ISRO has completed major missions at costs significantly lower than prevailing international standards.
2023 Space Policy: The policy envisages ISRO concentrating on frontier research, deep-space exploration and national missions, while private companies manufacture mature technologies and develop commercial applications.
Institutional knowledge: ISRO’s capabilities extend beyond individual technologies. Its scientists and engineers possess accumulated expertise in designing, testing, troubleshooting, modifying and responding to mission-related crises.
Knowledge transfer: The organisation’s expertise has been developed over decades through successful missions, technical failures and intergenerational learning.
Private-sector capability: The author argues that Indian space startups currently lack ISRO’s complete range of expertise, experience and infrastructure.
Intellectual-property concern: The article questions whether Indian startups have demonstrated an adequate record of creating and scaling sophisticated intellectual property.
Technology-transfer agreements: A Parliamentary Standing Committee on Science and Technology reportedly examined approximately 100 agreements covering 61 technologies.
Transfer fees: According to the article, nearly 70 agreements involved fees below ₹10 lakh, while some technologies were transferred for as little as ₹6,000.
Zero-cost transfers: A small number of technologies were reportedly transferred without any fee.
Public investment: The author argues that technologies created through decades of publicly funded research should not be transferred for only nominal returns when they possess significant commercial potential.
Skyroot Aerospace: The valuation of Hyderabad-based Skyroot Aerospace reportedly tripled following the successful launch of India’s first privately developed orbital launch vehicle.
Loss of personnel: More than 100 ISRO professionals are reported to have moved to private-sector companies.
Brain-drain risk: Higher private-sector compensation and concerns about ISRO’s future role may encourage additional experienced scientists and engineers to leave the organisation.
Role of NSIL: The article proposes restructuring NewSpace India Limited, ISRO’s commercial arm, to secure better financial returns from commercially valuable technologies.
Suggested commercial model: Technology transfers could involve licensing fees, recurring royalties or equity holdings rather than only a one-time nominal payment.
Long-term value sharing: If transferred technology contributes to the creation of a major private company, the public institution that developed it should participate in the value subsequently created.
Incentives for scientists: The author recommends giving ISRO scientists a meaningful economic stake in commercially successful technologies they helped develop.
Key takeaway: Private-sector participation should complement ISRO’s capabilities. Commercialisation should generate returns for ISRO, preserve its institutional strength and reward the scientific talent responsible for creating valuable technologies.
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