The Indian Space Research Organisation (ISRO) has announced plans to open its LVM3 (Large Vehicle Module 3) manufacturing to private players, marking a significant shift in India's space sector approach. According to reports from Upstox Securities, this decision represents a strategic move to expand India's growing space economy by involving private sector participation in critical space infrastructure development. The move is part of India's new Space Policy that aims to grow the country's space economy five-fold to about ₹3,600-4,000 crore by 2030. As reported by The Times of India, the government has declared an Indian Space Policy opening up the entire value-chain of the space industry to the private sector with a highly liberal environment for foreign investment.
The manufacturing opportunity is expected to benefit several major Indian companies including L&T, Adani, Mahindra, JSW, Bharat Forge and Solar Industries. As reported by Upstox Securities, these companies are positioned to capitalize on the expanded private sector participation in India's space infrastructure development. The move is expected to create substantial opportunities within India's growing space economy, with these companies potentially securing significant contracts for LVM3 manufacturing and related space infrastructure projects. According to The Times of India, over 400 start-ups are currently operating in India, being generously supported with venture capital, seed money, technology transfer and hand-holding.
The decision to open LVM3 manufacturing to private players represents a significant development for India's space sector, creating new opportunities for established industrial players. According to Upstox Securities, this move is expected to strengthen India's position in the global space economy while providing substantial business opportunities for the identified companies. The expansion of private sector involvement in space infrastructure development is anticipated to accelerate India's space capabilities and commercial applications, particularly as the global space economy is estimated at around $300 billion in 2023 with projected growth to $1.3 trillion by 2035. As reported by The Times of India, the Prime Minister has trumpeted India's march towards a "dominant position in the global space sector," based on India's 'cost-competitiveness in launching space ventures, vast talent pool and high risk-taking capacity'.
India faces significant competition in the global space market, with the US holding 50% market share, China around 8% and India only 2%. As reported by IPA Service, the global space-based economy is estimated at around $300 billion in 2023, with the US currently conducting about 140 reusable and 40-odd expendable launches each year, compared to ISRO's 5 launches in both 2024 and 2025. China has rapidly increased from 40 launches in 2018 to almost 100 last year and is estimated to cross 140 this year. The challenge lies in India's need to develop commercial space-based services rather than just launch infrastructure, with the commercial sector accounting for 78% of the space economy and space-based services worth about three times as much as space-based infrastructure. According to The Times of India, only a few start-ups in India offer such services but with a thin customer base which are today mostly the government itself.
