This paper presents the design and development of a customized low-cost GPS receiver to be tested on the PNSS-1 microsatellite. The GPS receiver is optimized to meet PNSS-1 requirements including positional accuracy better than 20m and update rate greater than 1 Hz. The receiver uses COTS components including an FPGA and consists of a front-end module and processing system. The front-end receives and digitizes GPS signals, while the processing system performs correlation, decoding, tracking and acquisition to determine satellite position and velocity information. Preliminary results suggest the design meets PNSS-1 specifications using space-graded components.