The ISRO Chairman expressed concerns about Indian rockets remaining unused owing to the lack of demand. This is an issue of competitiveness and government procurement. In an issue brief, I explain why this has happened and what India can do to overcome this:
… The government established NewSpace India Limited (NSIL), a central public sector enterprise, as ISRO's commercial arm. One of NSIL's main functions was to build and launch satellites based on market demand. This approach has led to a decrease in the launch of ISRO-built satellites, as NSIL now seeks end customers prior to actual launch.
… The deployment of these satellite constellations is driving demand for launch services globally. Even ISRO's LVM3 rocket carried 72 OneWeb satellites across two launches in 2022 and 2023, which marks the first instance of Indian rockets launching satellites for space-based internet…
… ISRO’s priority must be to drive costs down. Despite being praised for their low-cost launches, ISRO faces stiff global competition from companies like SpaceX, which have already implemented and tested reusable launch technology. This technology enables SpaceX to offer more competitive prices per kilogram of payload…
… For the foreseeable future, it is crucial for the government to assume the role of the anchor customer, providing stability and certainty to the burgeoning space ecosystem. This support will not only catalyse the expansion of space launch industries but also foster local development and spur innovation within the sector.
Read the full issue brief here: https://takshashila.org.in/blogs/demand-for-space-launch-services-in-india