The chairman of the Indian Space Research Organisation (ISRO), S Somnath, has highlighted the insufficiency of government funding for space exploration and the critical need for private sector involvement. During a session organized by the Karnataka Educational Institutions Society, he stated that the current budget allocation of ₹12,000 crore (approximately $1.5 billion) is inadequate for India's ambitious space goals, particularly in light of upcoming missions like the planned lunar voyage.

ISRO Chairman S. Somnath has underscored the critical need for private sector collaboration in India's space exploration efforts, citing insufficient budget allocations as a significant barrier. He emphasized that relying solely on government funding is not sustainable and that creating business opportunities is essential for the future of space initiatives in India.

Somnath's advocacy for public-private partnerships (PPPs) aligns with a broader trend observed globally, where space agencies like NASA have successfully integrated private companies into their operations to share costs and risks associated with space missions. By involving private players, ISRO can focus on its core research and development activities while delegating routine tasks such as satellite manufacturing and launches to the private sector. This shift not only enhances operational efficiency but also opens avenues for innovation and technological advancement.

Moreover, the integration of private enterprises is seen as a strategic move to elevate India's space economy from its current valuation of $9 billion to an estimated $44 billion in the coming years. This growth is expected to significantly increase India's share in the global space market, which currently stands at just 2%. Somnath's remarks highlight the importance of establishing a clear regulatory framework to facilitate this collaboration, ensuring that both public and private sectors can work together effectively.

Somnath emphasized that relying solely on government funding is not sustainable, as space exploration is inherently costly. He argued that to foster a thriving space economy, it is essential to create business opportunities and an ecosystem that encourages private investment. He noted that for every rupee spent by ISRO, there is a return of ₹2.50, underscoring the agency's significant contribution to society and the economy.

Moreover, he expressed that while ISRO does not compete with other nations' space agencies, it aims to serve national interests and requires operational freedom to innovate. This freedom can be achieved through collaboration with private entities, which would not only enhance funding but also drive technological advancements in the sector.

In addition to advocating for increased private sector participation, Somnath praised initiatives like the ₹1,000 crore venture capital fund announced in the recent budget, aimed at supporting space start-ups. However, industry experts have criticized this amount as insufficient compared to global standards, suggesting that a more substantial investment is necessary to truly stimulate growth in India's space economy.