The establishment of IN–SPACe was announced in June 2020 by the Minister of State for Space Jitendra Singh,[1] with the Union Cabinet approving its creation.

[5][6][7] Over the years, ISRO has developed several industries and Micro, Small and Medium Enterprises (MSMEs) as supply chain partners in realization of launch vehicles and satellites.

[11] IN–SPACe will act as a link between the ISRO and private sector companies, assessing "how best to utilise India’s space resources and increase space-based activities.

It would result in reduced requirements for housing several stations at the same location, financial advantages, resource efficiency, improved service coverage, and cooperative innovation.

Azista BST Aerospace has also been authorized by IN-SPACe to establish a ground station in the UHF frequency band.