ISRO Shifts Launch Vehicle Manufacturing to Private Sector and PSUs

The Indian Space Research Organisation has confirmed that it will not manufacture launch vehicles in future and will transfer that responsibility entirely to the private sector and public-sector undertakings.

The statement came during interactions linked to National Space Day commemorations. ISRO leadership indicated that the agency’s focus will remain on research, design and advanced technology while industry scales production of operational vehicles.

Prime Minister Narendra Modi met chief executives of 20 Indian space start-ups, including Skyroot Aerospace, and encouraged them to expand capacity. The shift aligns with earlier policy moves that opened the sector to non-governmental entities for launch services and satellite manufacturing.

India’s commercial launch market has grown with the entry of multiple start-ups. The decision removes ISRO from routine production lines and is intended to free resources for next-generation propulsion, human spaceflight and interplanetary missions.

Existing contracts and technology-transfer arrangements with industry partners will continue under the new division of labour.