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The Space Economy

ISRO: Space on a Budget

How India's space agency achieved major missions at a fraction of the cost of other countries, and the economic reasons behind its low costs.

The Indian Space Research Organisation, ISRO, founded in 1969, has become known for achieving ambitious space missions at remarkably low cost.

Landmark missions

  • Mangalyaan, the Mars Orbiter Mission, launched in 2013, made India the first Asian country to reach Mars orbit and the first country to do so on its first attempt. Its cost, around 450 crore rupees, or roughly 74 million dollars, was widely compared to the budgets of Hollywood space films.
  • Chandrayaan-3 landed near the Moon’s south pole in August 2023, making India the first country to land in that region and the fourth country to soft-land on the Moon. Its reported cost was around 600 crore rupees.
  • PSLV, the Polar Satellite Launch Vehicle, became a reliable workhorse, launching a record 104 satellites in a single mission in 2017.

Why ISRO’s costs are low

  • Lower labour costs: Indian engineers’ salaries are much lower than in the United States or Europe.
  • Frugal engineering: reusing proven designs, minimal testing hardware and careful mission design, such as using multiple Earth orbits to build speed for Mangalyaan rather than a more powerful rocket.
  • Domestic manufacturing of many components.
  • Smaller, focused missions with clear goals.

Economic contributions

ISRO’s satellites support communications, broadcasting, weather forecasting, disaster warnings, resource mapping and navigation through NavIC. It also earns revenue by launching foreign satellites commercially.

Slow and steady to Mars

Instead of building a massive rocket to fly directly to Mars, ISRO placed Mangalyaan in an orbit around Earth and fired its engine several times to raise the orbit step by step before heading to Mars. This took longer but required a smaller, cheaper rocket. Clever mission design substituted for expensive hardware.

Thinking low cost means low quality

ISRO's missions have achieved world firsts and long operational lives. Low costs reflect lower wages, efficient design and focused goals, not lower ambition or competence.

Key takeaways
  • ISRO, founded in 1969, is known for low-cost, high-achievement missions.
  • Mangalyaan reached Mars on the first attempt in 2014 for around 450 crore rupees.
  • Chandrayaan-3 landed near the Moon's south pole in 2023.
  • Lower labour costs, frugal engineering and domestic manufacturing keep costs low.
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