Budget 2026-27: Stability for State-Led Space Programs Amidst Private Sector Concerns
The 2026-2027 Budget for the space sector shows a 5.3% increase from pre-pandemic levels, indicating a shift towards sustained growth. While the budget supports state-led programs like ISRO, private sector bodies like ISpA and SIA-India have expressed concerns. Key issues include the lack of a dedicated Production Linked Incentive (PLI) scheme for space-grade components and the 18% GST on manufacturing, which creates cash-flow problems. Although a ₹1,000 crore Venture Capital fund was established, industry experts argue for more structural reforms, such as low-interest lending and tax credits for R&D, to bridge the 'death valley' between prototype and commercial scale.
Key Points
- The space budget has grown by 182% since 2013, but recent growth has slowed.
- Private players are calling for GST rationalization and a PLI scheme for space manufacturing.
- A ₹1,000 crore VC fund has been set up to support space startups over the next decade.
- India currently holds around 3% of the global space market and aims to reach 10% by 2030.
Exam Facts
- ₹1,000 crore Venture Capital fund for space sector
- 18% GST on space manufacturing
- India's global space market share target: 10% by 2030
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