India's 'NASA' Faces Brain Drain as Scientists Flock to Private Sector for Higher Pay

The Indian government has tightened rules on resignation and early retirement for scientists at the national space agency, the Indian Space Research Organisation (ISRO). The decision was taken after more than 100 scientists and technical staff chose to leave over recent months.

The move was made because the wave of resignations was deemed to be disrupting several strategic national projects, including India’s first crewed spaceflight programme, Gaganyaan.

India’s Department of Space issued new rules tightening the process for applying for voluntary retirement or resignation for scientists involved in critical missions. In an internal memo dated 14 July cited by the ANI news agency, it was stated that the surge in departure requests from ISRO had caused delays to projects of national importance.

ISRO Chairman V Narayanan said staff turnover is a normal occurrence in any organisation. However, he said the new rules were necessary to ensure important projects were not suddenly disrupted.

“This is part of every organisation. This step will ensure that important projects do not suddenly experience disruption,” said Narayanan, quoted by CNA on Wednesday (29/7/2026).

The policy comes amid the rapid growth of India’s private space industry, which is becoming increasingly aggressive in recruiting highly experienced specialists.

On Saturday (18/7), space technology start-up Skyroot Aerospace made history as the first Indian private company to successfully launch its own rocket carrying a satellite into orbit from Indian territory. The Hyderabad-based company was founded by former ISRO scientists.

Abhishek Raju, a former co-founder of the geospatial intelligence company SatSure, said India’s space industry has now developed rapidly. According to him, hundreds of space companies have emerged and their needs are no longer merely for engineers.

“India’s spacetech industry has matured. There are now hundreds of space companies and they are no longer just looking for engineers. They need people who have managed space missions end to end. For decades, that expertise was built within ISRO,” he told CNA.

This development raises new questions about the effectiveness of stricter rules in retaining top talent. On the other hand, there are concerns about whether India can build a strong private space industry without diminishing the capacity of the institution that has long been its foundation.

Raju explained that for several decades, India’s space programme was almost entirely synonymous with ISRO. However, following various reforms and the flood of venture capital after the pandemic, space companies have grown far more quickly.

“With the recent reforms and the entry of venture capital after the pandemic, companies that previously had only 20 to 25 employees now employ 150 to 200 people,” he said.

Unlike software start-ups, space companies require expertise that takes decades to build, from systems integration and propulsion technology to programme management and launch operations.

“The only legitimate source for us is ISRO,” said Raju.

He explained that scientists who have spent years at ISRO bring not only deep technical capability, but also experience of managing space missions in their entirety — skills that start-ups cannot quickly replicate.

Sanjay Nekkanti, founder and CEO of Dhruva Space, said the industry’s dependence on former ISRO scientists is a natural consequence of the development of India’s strategic sector.

“For decades, most of this expertise resided in ISRO, DRDO (Defence Research and Development Organisation), defence laboratories and state-owned companies, because these were the institutions trusted to develop India’s strategic technologies,” he told CNA.

He added that retired ISRO scientists remain active in mentoring engineering teams and contributing to product development at Dhruva Space, alongside experts who previously worked at NASA and the European Space Agency (ESA).

Although there is no official data on the movement of ISRO scientists to the private sector, Raju said start-ups have become an increasingly attractive destination for experienced talent. In addition to offering competitive salaries, these companies also provide leadership positions, employee share options and the opportunity to develop technology more quickly.

A report by the Economic Times in March 2025 also noted that Indian space start-ups are increasingly active in recruiting former ISRO scientists to strengthen leadership, commercialisation and global expansion.

“They may complete more work in one year than they could in five or seven years,” said Raju.