India Explained
ImplementedBJPNarendra Modi

Space sector reforms and creation of IN-SPACe

In June 2020 the Union Cabinet approved opening space activities to private firms through IN-SPACe as a regulator and promoter, with NSIL as ISRO's commercial arm.

Space programme

Facts

  • The Union Cabinet approved reforms on 24 June 2020 to widen private-sector participation across space activities [1][2].
  • The Indian National Space Promotion and Authorization Centre (IN-SPACe) was created to give private companies a level playing field in using Indian space infrastructure and to guide and authorise them [1][2].
  • New Space India Limited (NSIL) was set up to move the sector from a supply-driven to a demand-driven model, and ISRO was to focus on research, new technologies, exploration and human spaceflight [1].
  • Some planetary exploration missions were to be opened to private firms through an 'announcement of opportunity' mechanism [1].
  • In a reply to the Lok Sabha on 12 August 2026, the Department of Space said about 440 space technology startups were registered on the Startup India portal, and IN-SPACe had granted 113 authorisations to 52 non-government entities, 18 of them startups [3].
  • The same reply listed two commercial launches by private companies as proposed in 2026-27 and more than six in 2027-28, with the manifest not yet approved [3].

Why

Reasons given by those who did it

  • The government stated the reforms would allow ISRO to focus on research and exploration while private firms took on a larger role in applications and services [1].
  • It stated that a single-point interface would help private companies use ISRO facilities and technology [2].

Criticism of that reasoning

  • No substantial criticism of the policy design was located in the sources reviewed; evaluations of outcomes are limited because launches by private firms are still being planned.

Benefits and concerns

Benefits (2)

  • Created a formal route for private participation and authorisation.113 authorisations to 52 non-government entities as of August 2026 [3].
  • Growth in the number of registered space startups.About 440 space technology startups registered on the Startup India portal in 2026; an IN-SPACe official cited over 450 ventures, so counts vary by source and definition [3].

Concerns (2)

  • Private orbital launch activity had not yet been shown at scale six years after the reforms.Two commercial launches by private companies were proposed for 2026-27; the 2027-28 manifest was not approved [3].
  • Only a small share of registered startups held authorisations, and the policy relies on ISRO facilities and technology transfer.18 of about 440 registered startups held IN-SPACe authorisations; NSIL had signed 118 technology transfer agreements [3]. This is an interpretation of the reported counts, which have different definitions.

Evidence points

+5.0
points, mean of two scorers (scale −25 to +25)
+4 to +6
range between the two scorers' totals
Low confidence
scorers agree within 1 point on every criterion
ReachHow many people did the action materially affect?
Mean +0.5A 0B +1
Outcome evidenceDo official or independent data show the intended result (or its opposite), compared with the era baseline and peers?
Mean +0.5A 0B +1
Cost and sustainabilityIs the fiscal cost proportionate, and is the effect durable?
Mean +1.5A +1B +2
Process and rightsWas it made with debate, consultation and legal soundness, and did it respect rights and court rulings?
Mean +1.0A +1B +1
DeliveryWas it implemented as announced, on time and at scale?
Mean +1.5A +2B +1

Positive meanNegative meanScorer AScorer B

Scorer A. 113 authorisations and about 440 startups registered, but private orbital launches are not yet shown at scale, so outcomes remain unclear.

Scorer B. 113 authorisations granted but private launches are still only planned, so outcomes after five years remain modest.

Context used when scoring

Era baseline
Before 2020 private firms in India mainly acted as suppliers to ISRO, while globally commercial launch and satellite markets were growing.
Lag before outcomes show
5 years
Shocks considered
covid-2020
Uncertainty
Low confidence. Scorer totals are +4 and +6. How uncertainty is shown.

In depth

Until 2020, private companies in India largely supplied components and subsystems to ISRO. The June 2020 decisions created IN-SPACe as an authorising and promotional body and used NSIL as the commercial arm. The stated purpose was to let ISRO concentrate on research and exploration while private firms took part in launches, satellites and services.

By August 2026 the government reported 113 authorisations to 52 non-government entities and about 440 registered space startups. Private launches were still listed as proposed for 2026-27, so most of the measurable outcomes concern the number of participants rather than revenue or launches.

Supporters point to the growth in participants and the formal process. Open questions in the data are how much of the activity depends on ISRO facilities and on government demand, and when private launches will occur. This review did not find an independent evaluation, and counts differ between sources, so confidence is low. The legislative framework (a space activities law) was not covered in the sources retrieved.

Sources

  2. Historic reforms initiated in the Space sector
    narendramodi.in (reproducing Government release)Primary

Last reviewed .Report an error orchallenge a score.

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