The Indian Cabinet recently approved the Indian Space Policy. This policy institutionalised the private sector’s participation in the space sector and clarified the role and responsibility of private players. Private space companies can perform end-to-end space activities. Commercial entities are important for space exploration and advancements in space research. However, owing to dual-use space technology, the Indian Government can also use capabilities acquired through commercial space entities for the military because many private space firms already working with the Indian army, creating an arms race in South Asia. In 2021, the Indian Government launched the Indian Space Association (IsPA) to conduct open space activities for the private sector and startups. Companies such as Larsen and Toubro, Nelco (Tata Group), OneWeb, Mapmy India, and Walchandnagar Industries are founding members of this organization. Many of these firms currently work with the Indian Ministry of Defense. Larsen and Toubro, in February 2023, signed a contract of ?2,585- crore contract with the Indian Defense Ministry and has already developed and industrialized 50 defence products. Nelco is part of the Tata Group, a key player in the indigenization weapon development drive of the Indian Government. In 2022, Tata Group signed a contract to develop a C-295 military transport plan for the Indian army. Moreover, Tata Group delivered indigenously developed quick-reaction vehicles in the same year. Collaboration between the Indian Defense Ministry and new commercial firms can increase the threat to the survivability of Pakistani forces. Furthermore, in March 2023, the Tata Group signed the MoU with Lockheed Martin for fighter-wing production in India. In addition, drones and guided bombs are being developed for the Indian military. Walchandnagar Industries also produce aerospace, defence, missile, and nuclear power. Its websites describe the company’s role in strengthening India and aligning itself with the requirements of the Indian Defense Ministry. It also describes its collaboration with the Defense Research and Development Organization (DRDO) and the Ministry of Defense to produce strategic articles, tactical missiles, and critical platform-based equipment. India already has a remarkable space program and has launched 422 satellites from 34 different countries as of March 26, 2023. The inclusion of a commercial firm that is already working for Indian defence will increase the scope of the Indian Space Program and help advance reconnaissance capabilities and missile technology. There is a close connection between missile technology and space launches because launchers can be converted into missiles, and missiles can also be converted into launchers. Both have several intertwined elements. Examples include rocket propellents, engines, airframes, motor cases, linearities, and insulation. Additionally, the production of the vector control system, exhaust nozzles, staging process, and separation of payloads must be considered. Moreover, the production of strap-on boosters and ground lunch equipment is similar. This has already occurred in China, which used a similar guidance system in long March 2 and 3 space rockets and CSS- 4 ballistic missiles. Satellites can improve the precision of short-to medium-range ballistic missiles to 20-25 per cent and the precision of advanced ballistic missiles to 70 per cent. India is also exploring ways to increase the capability of its remote-sensing satellites, and these firms might help India. In 2003, the Indian capability of remote sensing satellites was at a basic level. It can achieve a maximum resolution of 6 m for panchromatic imagery. Owing to its capability, it can be used to analyze large structures such as aircraft hangers or fixed radars. Therefore, it has limited military applications and is useless for finding mobile vehicles or aircraft. However, Indian remote sensing capability is increasing. India currently has at least six satellites to capture images with 0.6- 1-meter-high resolution. The commercial satellites of private Indian companies can help India improve its remote sensing and reconnaissance capabilities and aid in counterforce doctrines. Hughes Communication India, a founding member of the ISPA, works with the Indian Defense Ministry. It is working on providing satellite system integration projects for the Indian Army, navy, and Air forces. Collaboration between the Indian Defense Ministry and new commercial firms can strengthen India’s counterforce capabilities against Pakistan and increase the threat to the operations and survivability of Pakistani forces. Owing to these capabilities, the deployment of assets and force becomes difficult, and the elements of surprise and the ability to retaliate are removed. Pakistan and India have many unresolved issues, and there is currently a lack of diplomatic communication between them. Therefore, in the case of a war between India and Pakistan, these Indian capabilities will be in the minds of military planners. Therefore, conflicts can quickly move toward nuclear escalation. Pakistan can also develop kinetic and non-kinetic anti-satellite weapons systems and second-strike capabilities in the ocean domain. It can also invest in upgrading its missile program in response to increasing Indian missile capabilities. The writer is a research officer at the Center for International Strategic Studies, AJK.