The Indian Space Association (ISpA) emphasized the importance of enhancing fiscal, regulatory, and structural support to propel India into the top three spacefaring nations. They presented recommendations to the government aimed at boosting domestic manufacturing, national security, job creation, and global competitiveness while ensuring secure access to critical satellite and geospatial data. Recognizing the space sector as ‘critical infrastructure’ was highlighted as crucial to attracting private investment, enabling infrastructure-grade financing, and strengthening national resilience.
The ISpA pointed out that although Indian private entities have demonstrated capabilities in satellites, launch systems, and ground infrastructure, the lack of assured government demand hinders their growth potential. They proposed a formal procurement mandate to support industry expansion while allowing ISRO to concentrate on strategic missions. Additionally, the Association suggested that at least 50% of all government procurement for space-based services, hardware, and missions should come from Indian private entities.
Furthermore, the ISpA recommended the implementation of Production-Linked Incentive (PLI) schemes for various space-related components, a five-year tax holiday for space manufacturing, launch services, and space-based service providers, and R&D tax credits for qualifying space-sector research. Extending Special Economic Zones (SEZs)-like benefits was also advised to bolster India’s position as a global space manufacturing and services hub. Granting deemed SEZ status to space tech parks and manufacturing clusters, along with other incentives like duty-free imports and tax deductions for hiring technical personnel, were among the Association’s proposals.
In a significant statement, the ISpA highlighted the pivotal moment India is facing in its space journey. They emphasized that by acknowledging space as critical infrastructure, mandating private sector involvement, streamlining taxes, incentivizing research, and ensuring regulatory clarity, the Union Budget 2026-27 could transition the government’s role from provider to partner and anchor buyer.
