INSAT-1D was 4th and the concluding multipurpose geostationary satellite of INSAT-1.

The success of this launch meant a lot to India - a country that was setting up its national computer networks. Relying on a lot of communication circuits, microwave, coaxial, and fibre-optic telecommunication links throughout the country causes a huge problem; thus the Indian Space Research Organisation (ISRO) planned at the start of the INSAT-1 series to always have at least two satellites in space to meet the increasing demand of telecommunication links for India's civilian community. INSAT-1A and INSAT-1C had already faced immature death and their plans had suffered a serious setback. Another satellite INSAT-1B, launched in 1983, exceeded its planned seven-year working life.

INSAT-1D was built by Ford Aerospace (now Loral Inc) for the Indian National Satellite System. Initially, the launch was scheduled for 29 June 1989. Unfortunately, 10 days before that, during launch preparation, a launchpad hoist cable broke and a crane hook fell on it damaging its C-band reflector. The fully insured satellite was repaired by Ford Aerospace at a reported cost of $10 million. But that mishap was followed by solar panel damage of cost $150,000 suffered during the 1989 San Francisco earthquake, which also had to be fixed before it could be launched.