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The many challenges for ISRO: Rise of startups, launch setbacks, attrition

01 Aug 2026
2 min

India's Space Sector Developments

India's space sector, led by the Indian Space Research Organisation (ISRO), has seen a series of significant developments over the past few years. These include notable failures, project slowdowns, attrition fears, and emerging competition from homegrown startups.

Unprecedented Failures and Project Slowdowns

  • ISRO faced back-to-back failures of two versions of its PSLV rocket - PSLV C61 and C62 on May 18, 2025, and January 12, 2026, respectively.
  • Delays have been noted in the G1 unmanned test flight for the Gaganyaan mission, India's maiden human spaceflight initiative.

Attrition Concerns at ISRO

  • A July 14 Department of Space memo noted increased requests for voluntary retirement and resignation from Group A scientific personnel, especially those involved in critical projects like Gaganyaan.
  • While media reports suggest over 100 personnel exited ISRO in the past year, insiders claim this figure is exaggerated, considering ISRO's long history.

Exodus to Startups

  • Many young scientists are leaving ISRO for the burgeoning startup ecosystem, offering salaries 3-5 times higher than ISRO's.
  • Notable startup founders like Pawan Kumar Chandana and Naga Bharath Daka have transitioned from ISRO to create successful ventures like Skyroot Aerospace.

Impact of Recent Failures and Slowdowns

  • The failures of PSLV rockets have affected ISRO's morale, halting planned launches for the year.
  • The ambitious Gaganyaan project has seen delays in its timeline, partly due to prioritizing astronaut safety.

Emergence of Space Startups

  • India's space startup ecosystem has grown from one in 2014 to 400 in 2026, driven by a new space policy and government initiatives.
  • Startups like Skyroot Aerospace, Agnikul Cosmos, and Astrobase focus on small satellite launches, capitalizing on the global demand for such services.

ISRO's Role Amidst the Private Sector Rise

  • Despite the rise of private players, ISRO remains crucial for research and development of new technologies and large-scale missions.
  • Dr. Annadurai mentions that ISRO should focus on high-end research, while routine production can shift to private industries.

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Astrobase

Astrobase is a startup in the Indian space sector, likely involved in satellite development, data services, or related space technologies, contributing to the diversification of the industry.

Agnikul Cosmos

An Indian space startup renowned for developing the world's first 3-D printed rocket engine, showcasing advancements in private sector space technology in India.

Skyroot Aerospace

A private Indian company focused on developing launch vehicles for space missions, signifying the growing private sector participation in India's space exploration.

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