As India’s space industry continues its rapid expansion, stakeholders are advocating for increased financial support and policy reforms in the upcoming Union Budget 2025. The sector, which has seen significant momentum following government initiatives, is looking for further investment to enhance research, development, and global competitiveness. Industry leaders stress the need for strategic funding, incentives, and streamlined regulations to solidify India’s position as a space technology powerhouse.
‘Increased R&D funding, tax incentives, and streamlined regulations are essential to foster innovation and strengthen the sector. The right incentives can position India as the hub for space entrepreneurship,’ said Divya Kothamasu, Founder of N Space, a Defence & Aerospace startup. She emphasized the need for dedicated funding for early-stage space-tech companies, enabling them to focus on deep-technology advancements and compete internationally.
Lt Gen AK Bhatt (Retd), Director General of the Indian Space Association, stated that the much-anticipated Venture Capital (VC) Fund is expected to become operational within the next two to three months following the appointment of a fund manager. ‘In the upcoming budget, we look forward to additional financial incentives from the government to further strengthen India’s space economy and propel this burgeoning industry toward new heights,’ he added.
Dr. Subba Rao Pavuluri, President of the SatCom Industry Association (SIA)-India, stressed the need for a significant increase in India’s space budget to maintain a competitive edge in the fast-evolving industry. ‘The budget should prioritize key areas such as advanced satellite technologies, space mining, space safety technologies, enhanced cyber capabilities for space security, space debris management, strategic initiatives like green propulsion systems, reusable launch technologies, and quantum satellite communication technologies,’ he said.
SIA-India has submitted a set of recommendations to the government, including the establishment of a Space Force Command under the Ministry of Defence to oversee defence-related space activities and ensure coordination with the Defence Space Agency (DSA), ISRO, and other key entities. The recommendations also include more financial incentives for satellite manufacturers and launch service providers, a simplified export regulatory framework through a single-window clearance system, and the introduction of Export Credit Insurance to safeguard smaller companies entering global markets.
Additionally, industry stakeholders are urging investments in domestic manufacturing capabilities for key space components such as lightweight alloys, space electronics, and optical imaging systems. ‘By investing in the production of high-performance materials like carbon-carbon fibers, space-qualified solar cells, and next-gen propulsion technologies, India can reduce reliance on foreign imports and strengthen the space sector’s self-sufficiency,’ SIA-India stated.
Anil Prakash, Director General of SIA-India, emphasized the need for a structured, long-term plan to guide the development of India’s space economy. The time is ripe for India to have a structured, long-term plan that outlines not just the vision but also the concrete steps and timelines necessary to achieve sustainable growth. This plan will provide a clear direction and attract both domestic and international investments. With strategic investments, policy reforms, and targeted initiatives, India can harness the full potential of its space capabilities, he said.
As the Union Budget 2025 approaches, the private space sector is hopeful that the government will introduce key policy measures and financial incentives to further accelerate growth, positioning India as a global leader in space technology and innovation.
