On the one hand, its rather interesting to see the US, champion of free and open markets, enforce a policy so against that very principle. If I'm not mistaken, not only is US policy meant to assist the private space industry in the US, but to also avoid indirectly assisting the Indian missile/ballistic missile program. Although in India's defense the agency that develops/manages/deploys satellites (ISRO) is separate from the agency that develops military missiles (DRDO).
I think its a big mistake to continue with this policy. It doesn't seem like the Indian satellite/missile programs are dependent on revenue from commercial launches (although it doesn't hurt, for sure), so they will continue regardless. But by making use of them, US corporations can get the benefit of R&D paid for by Indian taxpayers, for free. Besides which, I think it would lead to better cooperation and understanding between the 2 countries in this very important area.
I think its a big mistake to continue with this policy. It doesn't seem like the Indian satellite/missile programs are dependent on revenue from commercial launches (although it doesn't hurt, for sure), so they will continue regardless. But by making use of them, US corporations can get the benefit of R&D paid for by Indian taxpayers, for free. Besides which, I think it would lead to better cooperation and understanding between the 2 countries in this very important area.