"Commercialisation of the space sector is not the same as privatisation of ISRO." Discuss with reference to the Indian Space Policy 2023.

Privatisation moves ownership or control of a public body to private hands. Commercialisation opens markets and operations to private firms, and the State keeps the core institution. The Indian Space Policy 2023 takes the second path. In October 2026, ISRO's Chairperson V. Narayanan said again that ISRO "will not be privatised" [1].

Commercialisation under the Space Policy 2023

• End-to-end private participation: non-government entities (NGEs) can now work across the entire space value chain. India has 400+ space startups [3].
• Clear role split: IN-SPACe is the single-window authoriser for NGEs. NSIL is a public sector undertaking that commercialises technologies built with public money [2].
• Mature systems go to industry: the policy says mature systems "shall be transferred to industries for commercial exploitation" [2].

Why this is not privatisation

• Ownership stays public: ISRO remains the national space agency. It leads R&D, strategic missions and frontier capabilities. The government keeps control of critical space infrastructure [4].
• Buying from suppliers is not selling ISRO: about 75% of ISRO's budget for each PSLV/GSLV launch already goes to private industry. ISRO still owns the programme [1].
• The capacity gap: India has 56 satellites against demand for "thousands". So ISRO "handholds" industry so that the sector can grow [1], and its scientists can focus on advanced research [4].

Concerns that blur the line

• Hollowing-out fears: handing over publicly funded know-how could weaken ISRO's in-house capacity. In September 2026 ISRO had to issue an official clarification against reports that it would be privatised [4].
• Industry readiness: the first industry-built PSLV has fallen behind its original schedule [5].
• A weak referee: the 410th Parliamentary Standing Committee Report found a lower allocation for IN-SPACe and slow use of its funds [6]. The 2023 framework is a policy, not an Act, so licensing and liability have no statutory base [2].

The Space Policy 2023 opens the space economy to private firms and keeps ISRO public, strategic and research-led. Three steps would protect this line: a Space Activities Act, a well-funded and neutral IN-SPACe, and transparent technology transfers. These would turn private participation into national strength within an "ISRO-led national space ecosystem" [4].