Budget 2025: Space Sector Seeks PLI, Tax Relief, and Boosted Funding
India’s space sector has outlined key expectations for Union Budget 2025-26 to drive growth, innovation, and global competitiveness. Industry leaders have called for fiscal reforms, strategic incentives, and higher funding to strengthen the country’s position in the global space race.
A Production-Linked Incentive (PLI) scheme is a top priority to promote domestic manufacturing of satellites and space technologies. Awais Ahmed, CEO of Pixxel Space, highlighted its potential to enhance infrastructure development. Additionally, the Indian Space Association (ISpA) has sought tax holidays, import duty exemptions, and lower GST rates to attract private sector investment.
The industry also demands increased budget allocations for space-based applications. Sectors like road transport aim to utilise satellite data for operations, while science and exploration missions require significant funding. For defence, a 52-satellite constellation has been approved, with private companies developing 31 satellites. The Satcom Industry Association (SIA-India) has proposed increasing the budget to ₹40,000-50,000 crore to match global competitors like China and Japan.
Key funding priorities include advanced satellite technologies, reusable launch systems, space mining, cybersecurity, and green propulsion systems. To boost exports, the industry has recommended tax credits, export incentives, and strategic bilateral agreements.
Other proposals include establishing a dedicated space cybersecurity framework and creating a Space Economy Task Force to align fiscal policies with long-term sectoral growth.
By addressing these demands, Budget 2025 can unlock the immense potential of India’s space industry, ensuring its role as a global leader in space exploration and technology.
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