Sri Vijaya Puram | August 23, 2026
The Indian Space Research Organisation (ISRO) is gradually shifting the routine production of established launch vehicles to Indian industry, while continuing to lead the development of new launch systems, advanced technologies and future space missions.
The change does not mean that ISRO is abandoning launch-vehicle development or stopping work on rockets. Instead, the organisation is increasingly focusing on research and development, advanced technologies, mission design and future space programmes, while established vehicles are increasingly being produced through Indian companies and industry partnerships.
The Polar Satellite Launch Vehicle (PSLV) is among the launch vehicles moving towards industry-led production. NewSpace India Limited (NSIL) has taken steps to facilitate such production, including arrangements involving Hindustan Aeronautics Limited (HAL) and Larsen & Toubro.
The Small Satellite Launch Vehicle (SSLV) has similarly moved towards industry production following the transfer of its technology. The objective is to expand India's launch capacity and enable industry to undertake production at commercial scale.
A similar approach is being pursued for the heavier Launch Vehicle Mark-3 (LVM3), with plans for greater private-sector participation in its production.
At the same time, ISRO will continue to play a central role in developing new launch systems and technologies, including those required for human spaceflight and future exploration missions.
This distinction is important because the statement that “ISRO will not manufacture any launch vehicle” can be misleading if interpreted as ISRO abandoning rocket development altogether.
The more accurate description is that India is moving routine production of proven launch vehicles increasingly from ISRO-led manufacturing towards industry, while ISRO concentrates more heavily on advanced research, development and future launch technologies.
The shift forms part of India's broader effort to expand private-sector participation in the space sector and build a larger domestic launch-vehicle manufacturing ecosystem.
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