India wants its SpaceX moment: Why reusable rockets are the biggest test for private space startups

For nearly six decades, India’s space programme was led by ISRO, which built a reputation for developing reliable missions at relatively low cost. From launching communication satellites to reaching the Moon and Mars, the national space agency demonstrated India’s ability to deliver complex space missions with limited resources.

The next phase of the space economy is not only about reaching orbit, but making access to orbit repeatable, affordable and commercially viable.

That is where reusable rockets come in.

The breakthrough came with SpaceX’s Falcon 9 programme, which demonstrated that recovering and reusing rocket boosters could dramatically alter the economics of satellite launches. The achievement pushed reusable technology from an experimental concept to a central goal for space companies worldwide.

Indian startups are now attempting to solve different pieces of this complex puzzle — from launch vehicles and satellite systems to propulsion technology.

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Among them is Bangalore-based Astrobase, which is focusing on one of the toughest challenges in reusable launch systems — developing rocket propulsion technology. The company believes India’s next phase of space growth will depend on building the industrial capability to manufacture, test and operate reusable launch systems at scale.

“Reusability is not achieved by recovering a stage alone,” said Neeraj Khandelwal, Co-founder & CEO, Astrobase Space Technologies. “It requires the engine, structures, thermal systems, avionics and landing architecture to perform reliably across repeated missions while keeping turnaround time and launch economics commercially viable.”

Why reusable rockets matter for India

A conventional rocket is largely expendable. After delivering a satellite into orbit, most components are discarded, forcing companies to build a new vehicle for every mission.

Reusable rockets aim to change that model.

By allowing key components, especially engines and boosters, to return and fly again, companies can reduce manufacturing costs and increase the number of missions they can undertake.

This is becoming increasingly important as demand for space services grows.

Satellite internet networks, Earth observation systems, defence applications and communication infrastructure are creating demand for more frequent launches. Governments and companies are also looking for reliable alternatives as geopolitical tensions raise concerns over dependence on a limited number of launch providers.

“Satellite constellations are expanding, Earth-observation applications are becoming more critical, defence requirements are growing and customers are looking for greater diversification in launch options,” Astrobase said.

For India, reusable launch technology is not only a commercial opportunity but also a strategic priority.

India’s private space ecosystem takes shape

India’s space sector has undergone a major transformation since the government opened the sector to private participation in 2020.

The creation of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) provided a framework for private companies to participate in space activities and access ISRO facilities.

The policy shift marked a departure from the earlier model, where private firms largely supplied components to ISRO rather than building complete space systems of their own.

Startups such as Skyroot Aerospace and Agnikul Cosmos are attempting to build private launch vehicles, while others are developing satellite platforms, Earth observation technologies and space-based applications.

However, reusable rockets represent a far bigger engineering challenge.

Building an expendable rocket is difficult. Building one that can survive multiple flights requires advances in propulsion, materials, manufacturing and testing.

The engine challenge

Unlike traditional rockets, where engines are typically designed for a single mission, reusable launch systems demand far greater durability. The engine must endure extreme temperatures, immense pressure and violent vibrations during launch, while continuing to deliver consistent performance flight after flight with minimal refurbishment.

This is the challenge Astrobase is attempting to solve. The company is developing a high-thrust, full-flow staged combustion engine powered by liquid oxygen and methane — an advanced propulsion architecture that promises greater efficiency and reusability but requires extremely precise engineering.

“Reusability is not achieved by a successful engine firing alone. The real challenge is ensuring that performance remains predictable across multiple flights without requiring extensive refurbishment after every mission,” said Neeraj Khandelwal, Co-founder & CEO, Astrobase Space Technologies.

The company believes methane-based propulsion could offer advantages for reusable systems because it burns cleaner than several traditional rocket fuels, reducing residue that can complicate repeated operations. However, achieving commercial viability will depend not only on engine design but also on the ability to manufacture identical, high-performance components consistently at scale.

To build reliability before its first orbital mission, Astrobase plans to manufacture and test around 15 engines. The testing programme is expected to generate critical data on performance, component durability and manufacturing variations, helping refine the technology before commercial deployment.

The company is also developing production infrastructure that could eventually allow it to manufacture and hot-fire one high-thrust engine every week — a capability it believes will be essential for turning reusable rockets from a technological achievement into a commercially viable launch service.

Building beyond ISRO’s achievements

India’s private space companies are building on decades of ISRO experience.

ISRO has already demonstrated advanced launch capabilities through vehicles such as the Polar Satellite Launch Vehicle (PSLV) and the Geosynchronous Satellite Launch Vehicle (GSLV). The organisation has also conducted experiments on reusable launch technologies through its Reusable Launch Vehicle Technology Demonstrator programme.

But startups believe the next phase requires a different approach.

“Private companies must build on this foundation without merely attempting to replicate it,” Astrobase said.

The company argues that private players must develop their own product architectures, manufacturing systems and commercial operating models while benefiting from the scientific foundation created by ISRO.

“The strongest ecosystem will be one where public institutions advance national capability and private companies invest in specialised technologies, industrial capacity and faster execution,” it said.

Can India compete with SpaceX?

India’s advantage in the global launch market may not come only from lower costs.

The competition in the global launch market is increasingly expected to be defined not only by cost, but also by reliability, launch frequency, responsiveness and control over critical technologies.

India already has several strengths — a large engineering talent pool, decades of aerospace experience and a growing precision manufacturing ecosystem.

However, SpaceX’s advantage has come not only from reusable technology but also from years of flight experience, large-scale manufacturing and a steady pipeline of government and commercial missions. Building a similar ecosystem will take time.

Astrobase said it is working towards building an integrated launch chain covering engine manufacturing, testing, stage integration, vehicle qualification and launch operations.

Such capabilities could help India serve commercial customers as well as strategic national needs.

What India needs to scale its space ambitions

While the private space ecosystem is expanding, rocket development remains expensive and time-consuming.

Unlike software startups, space companies require years of research, testing and capital before generating commercial revenue.

Astrobase said India needs greater access to propulsion testing infrastructure, specialised materials, precision suppliers and skilled technical talent.

“Startups also require patient capital because propulsion and launch systems involve long development cycles and extensive testing before revenue begins,” the company said.

Clear regulations, predictable approvals and long-term procurement commitments will also be important to encourage investment.

The government’s role, according to the company, should be to create shared infrastructure while allowing private firms to retain technology ownership and build independent capabilities.

India’s next space race

India’s space programme began with a development mission — using satellites to improve communication, weather forecasting, agriculture and disaster management.

The next stage is about turning that technological capability into an industrial advantage.

Reusable rockets could become the foundation of a new space economy where launches become more frequent, affordable and commercially viable.

But the race will not be won by a single successful launch.

It will depend on whether India can build an ecosystem of engine manufacturers, suppliers, testing facilities, investors and skilled engineers capable of sustaining a global space industry.

India has already shown it can reach the Moon. The next challenge is proving it can build rockets that return, fly again and support a commercially sustainable space industry.