NEW DELHI: The Union Budget has outlined a big vision for India’s space sector by making a significant financial commitment aimed at bolstering space exploration, satellite technology and geospatial capabilities.
With Isro lining up a series of big-ticket space programmes for launches, FM Nirmala Sitharaman has allocated Department of Space Rs 13,416.2 crore for the fiscal 2025-26, a remarkable increase from the previous year’s allocation of Rs 13,042.7 crore in the interim Budget.
In the current budget, Rs 6,103.6 crore has been earmarked for capital expenditure, while Rs 7,312.6 crore has been allocated for revenue expenditure.
This reflects a focused effort on supporting both space infrastructure and operational needs of the sector.
With India increasing frequency of commercial satellites, the outlay for Isro’s commercial arm NSIL has been hiked from Rs 950 crore (revised 2024-25) to Rs 1,030 crore (2025-26). In another big move that the industry has been yearning for, the Centre has reduced customs duty to zero on key components used in the installation of satellites and building of launch vehicles.
Another significant announcement is the launch of the National Geospatial Mission, aligned with the PM Gati Shakti initiative. The FM also announced expanding the Atal Tinkering Lab (ATL) initiative to 50,000 govt schools over the next five years to push students towards science and technology innovations.
Industry representative Lt Gen AK Bhatt, director general of Indian Space Association, said, “The announcement of the National Geospatial Mission shows the growing commitment of the govt to use the downstream capabilities of the space tech sector. We also welcome the govt’s decision to remove customs duty on ground installations for satellites, including spares, consumables, and essential goods used in building launch vehicles and facilitating satellite launches.
This long-awaited reform aligns with the industry’s needs. Additionally, the increase in the space budget is a significant step towards strengthening India’s space ecosystem, fostering innovation, and enhancing global competitiveness.”
On duty exemptions, On tax exemptions, Shilpy Chaturvedi, Partner, Deloitte India on Space, said, “To support India’s expanding space industry, the govt has amended key tax provisions to provide greater relief to manufacturers and operators in the sector. Customs exemption, which now includes ground installation for satellites along with spares and consumables, is a welcome step that strengthens the satellite ecosystem. By covering all essential ground systems, including telemetry, tracking and command systems, this change will help lower operational costs for satellite operators and enhance India’s space infrastructure.”