India’s leap from space dreams to space power

Pallab Bhattacharyya

(Pallab Bhattacharyya is a former director-general of police, Special Branch and erstwhile Chairman, APSC. Views expressed by him is personal. He can be reached at pallab1959@hotmail.com)

September 10, 2025, will remain etched as a landmark in India’s space odyssey when NewSpace India Limited (NSIL), the Indian Space Research Organisation (ISRO), the Indian National Space Promotion and Authorisation Centre (IN-SPACe), and Hindustan Aeronautics Limited (HAL) signed a historic technology transfer agreement for the Small Satellite Launch Vehicle (SSLV). This was no ordinary contract; it was the 100th technology transfer facilitated by IN-SPACe and a bold announcement that India was no longer merely a research-driven spacefaring nation but was ready to emerge as a formidable manufacturing and commercial space power.

For decades, ISRO has been the custodian of India’s space dreams—designing, developing, and launching satellites for communication, research, navigation, and exploration. NSIL, its commercial arm, has carried forward this vision into the global marketplace by building satellites, offering launch services, and transferring technologies to industry. IN-SPACe has acted as a regulator and enabler, ensuring private sector participation flourishes within a safe and structured framework. HAL, with its long legacy in aerospace and defence, has now become the newest torchbearer of India’s commercial space future.

For the first time in India’s history, ISRO has transferred complete rocket manufacturing capabilities to a private entity. HAL was chosen after a fiercely competitive bidding process that saw 20 contenders, including an Adani-backed consortium. Its victory is recognition of HAL’s unmatched track record in aerospace manufacturing and its ability to scale cutting-edge technologies into market-ready solutions. Over the next two years, HAL will absorb SSLV technology completely and then spend the following decade producing and launching the vehicle. This isn’t just contract manufacturing—it is the handing over of a complete ecosystem, from design and integration to quality assurance, launch operations, and post-flight analysis.

The SSLV itself represents a revolution in satellite deployment. A compact three-stage rocket with a liquid velocity trimming module, it can place 500 kg payloads into low Earth orbit with speed and efficiency. Its USP lies in its small infrastructure footprint, quick assembly time—completed within a week by a lean team—and ability to launch flexibly from both Sriharikota and the upcoming Kulasekarapattinam spaceport. As the global small satellite market explodes in size, with demand for cost-effective, rapid launches growing each year, the SSLV positions India perfectly to seize this opportunity.

Today, India’s space economy stands at about $8.4 billion. Projections show it soaring fivefold to $44 billion by 2033, and SSLV commercialisation is expected to play a pivotal role in this journey. HAL estimates producing 6–8 SSLVs annually, with revenues of $6.5 million per launch. The global small satellite launch market itself is projected to hit $19.67 billion by 2032. With India’s reliability, affordability, and new private manufacturing strength, the country could capture a significant slice of this lucrative pie.

But this story is not just about numbers—it is about transformation. HAL’s transition from a component supplier to a full-fledged launch service provider creates ripple effects across the ecosystem. Hundreds of micro, small, and medium enterprises (MSMEs) and startups will now find new opportunities in the aerospace supply chain, spurring innovation, job creation, and entrepreneurship. Academic institutions will also benefit through collaborations, research tie-ups, and internships, ensuring that the next generation of scientists and engineers can apply their knowledge in real-world, cutting-edge programmes.

India’s share of the global commercial space market is currently a modest 2%, but the ambition is to touch 10% soon. The SSLV technology transfer provides the critical thrust toward this ambition. Beyond commerce, it strengthens India’s strategic autonomy in space. By indigenously developing and manufacturing launch vehicles, India reduces reliance on foreign suppliers, ensuring self-reliance in critical space capabilities. This independence is vital not just for communications or agriculture applications but also for defence and national security in an era where space assets have become indispensable.

HAL’s pedigree in manufacturing complex aerospace platforms such as the Tejas fighter jets and Prachand helicopters demonstrates its capability to handle the scale and precision required for rocket production. The SSLV is, therefore, not just a new contract for HAL but a redefinition of its role in India’s aerospace journey. From making aircraft for defence to rockets for the global marketplace, HAL’s evolution mirrors India’s own rise from a nation that once depended on borrowed technology to one that now exports it.

Globally, the SSLV will enter a competitive arena dominated by players such as SpaceX and Rocket Lab. Yet India’s advantage lies in cost and flexibility. Dedicated small satellite launches at affordable rates, backed by ISRO’s unmatched record of reliability, create a strong value proposition for global customers. Moreover, the Indian government’s broader reforms in the space sector—including IN-SPACe’s creation, liberalised policies, and dedicated venture capital support—have established fertile ground for private space entrepreneurship to flourish alongside giants like HAL.

The agreement’s human resource implications are equally significant. During the two-year technology absorption phase, ISRO’s scientists will train HAL’s engineers in every aspect of SSLV production. This will seed a new generation of experts in rocket science within industry, creating a multiplier effect as knowledge cascades down to MSMEs, startups, and academia. It also sets a precedent for future technology transfers, ensuring that other ISRO innovations in satellites, ground systems, or even heavy-lift rockets like the LVM3 can be progressively handed to private industry for scaling.

On the diplomatic front, this leap enhances India’s role as a trusted partner in international collaborations. Nations seeking affordable and reliable launch services will increasingly look to India, expanding the country’s soft power and opening doors for strategic cooperation. The SSLV’s environmentally efficient design also aligns well with the global emphasis on sustainable space practices, further boosting India’s credibility in the green-conscious era.

At a deeper level, this moment represents a profound psychological shift. For decades, India’s space journey was about proving itself, moving step by step from sounding rockets to moon missions, from borrowed technology to indigenous breakthroughs. Now, India has entered a new orbit—where the question is no longer whether it can achieve, but how far it can lead. With HAL preparing to roll out the first commercially manufactured SSLV by 2027, the world will see not just ISRO’s scientific brilliance but India’s full industrial and entrepreneurial might in the global space economy.

This transition, from dreaming about space to building the future of space commerce, encapsulates the nation’s broader story of resilience, innovation, and ambition. Just as India transformed its IT industry into a global powerhouse, the space sector now stands on the brink of a similar revolution. The coming decade may well be remembered as the one where India moved from being a participant in the space race to a leader setting the pace.

When history looks back at this moment, it will not just record the signing of a contract or the transfer of a technology. It will mark the precise instant when India’s space story changed its trajectory—from reaching for the stars to becoming the workshop where the ships to those stars are built. And that, perhaps, is the most fascinating ending one could imagine for a journey that is still only beginning.