Examine how institutional reforms involving ISRO, IN-SPACe and NSIL aim to turn India into a global space-economy hub. What governance challenges remain?

The Indian Space Policy 2023 brings India's space reforms into one framework. Its aim is to build a "commercial presence in space" [2]. It gives ISRO, IN-SPACe and NSIL separate jobs, so the sector becomes more commercial while ISRO stays a government agency, as ISRO's Chairperson recently stressed [1].

Reforms: who does what

• ISRO does frontier R&D: it hands mature technology to industry and focuses on new technologies and missions [2]. It also "handholds" startups [1].
• IN-SPACe is the single window: it authorises and promotes private (non-government) space firms. This has opened the entire space value chain to private players [2][3].
• NSIL is the commercial arm: it works on a demand-driven model and contracts Indian industry to build complete PSLVs [4].

How this builds a hub

• A larger ecosystem: there are 400+ space startups, and private rockets such as Vikram-1 are emerging [3].
• An industrial base: about 75% of ISRO's budget for each PSLV/GSLV launch already goes to private industry [1].
• Closing the capacity gap: India has 56 satellites but demand runs into "thousands". A single public agency cannot meet this [1].

Governance challenges

• An underfunded regulator: the 410th Parliamentary Standing Committee Report found that IN-SPACe's 2026-27 budget estimate was below its revised estimate for 2025-26. It also found IN-SPACe had not used 75% of its funds in the set time [5].
• Conflict of interest: ISRO (the player), NSIL (the seller) and IN-SPACe (the referee) all come under the Department of Space. The committee said a separate IN-SPACe approval for NSIL may only duplicate DoS approval [5]. This leaves private firms unsure whether the referee is neutral.
• No law behind the reforms: the 2023 policy is not an Act of Parliament [2]. Licensing and liability for damage therefore lack legal certainty.
• Execution risk: the first PSLV built by industry has been delayed [4], so industry's ability to build whole rockets is still unproven.
• Strategic concerns: how to price technology handed to companies built with public money, and whether ISRO keeps enough capacity to step in if a firm fails.

The three-tier model gives India a clear path from a state-led programme to a commercial ecosystem. It now needs a space activities law, an IN-SPACe that is properly funded and independent in practice, and the quarterly spending reviews the committee recommended [5]. With these, India can grow its share of the global space economy while ISRO remains a strategic public asset, in line with Aatmanirbhar Bharat.