India's space policy is opening up for greater participation from the private sector. ISRO has the overall goal of democratising access to space with low cost launches. A number of spaceflight start-ups have cropped up in recent years, and are being helped by ISRO. Spaceflight start-ups in India are hiring ex-ISRO engineers

Prime Minister Narendra Modi has demonstrated great interest in the Indian spaceflight since assuming office in 2014, with a notable pet project being the launch of the South Asia Satellite in 2017, for the benefit of over one and half billion people in the subcontinent. The government has been focusing on increasing the involvement of private industries in the space programme, to enable the commercialisation of space technologies and boost private investment in the space sector. In October 2021, Modi launched the Indian Space Association, inviting suggestions from private industries to boost the space sector in India. The industry body serves as the voice of the private spaceflight sector in India, with the government playing the role of the enabler.

ISRO is undertaking reforms of the space sector, streamlining its programs and increasing industry participation, with the goal of achieving a market share in excess of 10 per cent in the global space sector by 2030. Between 2007 and 2013, India launched 31 satellites for foreign customers. Since 2014, ISRO has deployed over 300 foreign satellites, along with 45 domestic satellites, with a very low number of unsuccessful missions, and never failing to deploy a contracted satellite for an international customer. In February 2017, ISRO deployed 104 satellites in a single PSLV launch, setting a world record at that time.

In 2020, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) was launched, providing a single window nodal agency to enhance commercialisation of India's space initiatives. Instead of just being suppliers or vendors, IN-SPACe hopes to enable private players to become independent players. At the same time, the government allowed participation of private entities in all phases of space activities. Since 2021, private proposals in India's space sector has grown by 30 per cent, with India having over 350 private space firms. In the Start-up India portal, 75 start-ups have registered under the 'space technologies' category.

ISRO's commercial arm, NewSpace India Limited executed its maiden launch in February 2021, deploying 19 satellites in orbit. There are six space technology incubation centres active across the country, at Agartala, Trichy, Jalandhar, Rourkela, Nagpur and Bhopal. A draft Spacecom document was launched in 2020 providing a framework for private companies to provide space based broadband communications services in India. The Defence Space Agency (DSA), supported by the Defence Space Research Organisation (DSRO) has been set up to create weapons to disrupt, degrade, destroy or deceive space capabilities of an adversary.

Despite the large number of launches, India produces the least amount of debris among all spacefaring nations, and is actively researching deorbited technologies, as part of its commitment to maintaining a clean and sustainable space environment.