India’s Earth Observation satellite ambition hinges on private sector push

ISRO would offer technical guidance and oversight, while private companies build and operate most of the satellites.

India’s bold plan to launch 119 Earth Observation (EO) satellites by 2040 has stirred much excitement — and rightly so. Valued at ₹40,000 to ₹70,000 crore, this vision represents one of the largest space-based infrastructure initiatives in the country’s history. But beneath the optimism lies a serious reality.

That is, the Indian Space Research Organisation (ISRO) cannot do this alone. The numbers are staggering. These 119 satellites will span various mass classes — from compact sub-100 kg payloads to large, sophisticated platforms weighing over 1,000 kg.

Based on estimates by former ISRO scientists, the effort may require between 50 to 90 rocket launches — several times more than ISRO’s current annual launch capacity.

At the recent National Space Meet 2.0, Nilesh M Desai, Director of ISRO’s Space Applications Centre, outlined the roadmap — including 103 EO satellites and 16 technology demonstration satellites. The intent is clear: India wants not just to observe its territory, but to become a global provider of high-quality EO data. However, intent alone won’t launch satellites.

The Private Sector Must Take the Lead

Retired ISRO officials, including its Chairman Dr S Somanath and Deputy Director (Technology and Systems) Mukund K Rao, now a space consultant, candidly admit that the Indian space agency cannot execute this vision alone.

ISRO’s current production capacity is not sufficient to meet the demand. The future lies in industrial-scale production, something only the private sector can deliver.

Fortunately, India is seeing the first signs of this shift. A private consortium has already been awarded a contract to build and operate 12 EO satellites.

The proposed Space City in Andhra Pradesh could become a manufacturing hub for rockets and space systems. Yet, these are early steps, and much more is needed to scale.

India should adopt a triad model: government, private sector, and academia working together to build a sustainable EO ecosystem.

Under this model, ISRO would offer technical guidance and oversight, while private companies build and operate most of the satellites. Academic institutions would drive research and talent development.

Why Strategy, Not Just Satellites, Matters

While the technology exists or can be sourced globally, the challenge is not just technical -- it’s strategic.

There must be a clear market and business model. Who will buy the data? What applications will drive demand -- agriculture, climate monitoring, defence? What is the return on investment?

Without answers to these questions, private players will hesitate to invest at scale.

Globally, countries like the US, China, and those in Europe have used anchor tenancy, buy-back models, and government incentives to support EO start-ups and build commercially viable ecosystems. India must adopt similar models -- not just in theory, but in execution.

Not a Cakewalk — But a Window of Opportunity

The next 15 years will be highly competitive. The US, China, and Europe already have operational constellations and advanced EO data services. If India wants a slice of the global EO market, it must move fast and think big.

This is not just about space. It’s about how EO data can drive national development, enhance climate resilience, bolster security, and support a tech-driven economy.

To succeed, India must urgently implement:

* A National Earth Observation Strategy

* Techno-commercial contracting models

* Public–private risk-sharing frameworks

* Tax and financial incentives for EO start-ups

* Stronger university–industry collaboration

* Clear policies on data access and monetisation

Time for a National Space Economy

This is not a question of capability, ISRO has proven its excellence repeatedly. The question is one of scale, speed, and sustainability.

This is the third time that ISRO has embarked on a long-term space mission exercise. In 1991, ISRO created a ten-year space mission profile. In 2002, a high-level committee formulated a 25-year space programme plan.

However, the achievements veered off-target.

Experts believe that if 80% of the 119 satellites and their launch systems are executed through the private sector, the current ambitious target is entirely achievable.

India is at the cusp of transitioning from a space-faring nation to a space-powered economy. But visions don’t launch satellites. Execution, policy clarity, and ecosystem support do.

(Venkatachari Jagannathan can be reached at venkatacharijagannathan@gmail.com.)

Views are personal, and do not represent the stand of this publication.