It was established on 6 March 2019 under the administrative control of the Department of Space (DoS) and the Company Act 2013.

The main objective of NSIL is to scale up private sector participation in Indian space programmes.

[4][12] An agreement was reached between NSIL and Arianespace for a long-term collaboration to enable satellite launch missions.

[14] On October 9, 2024, Bellatrix Aerospace and NewSpace India Limited signed a contract for the integration of Pushpak Orbital Transfer Vehicle (OTV) for NSIL's launch missions.

With the ability to move satellites into other orbits with more accuracy and efficiency, Pushpak OTV is made for in-orbit maneuvering.