The government in the Southern Indian state of Tamil Nadu approved its Space Industrial Policy, positioning the state as a hub for space innovation, high-value manufacturing and tech-driven job creation. State Industries Minister TRB Rajaa outlined that the Policy is built on three pillars: attracting investments of ₹10,000 crore into Tamil Nadu’s space sector, creating at least 10,000 high-value jobs, and building a future-ready skilled workforce in space technologies and services.

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This policy is not just for manufacturing, it will also focus on space-tech services and downstream innovation. This will open doors for startups, MSMEs and large players alike, Rajaa added. As of now, the State Cabinet led by Chief Minister MK Stalin has approved the Space Policy and the final Policy document will be unveiled later. 

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In line with the Policy, Special incentive packages will be created for small startups and big companies setting up in our upcoming Space Bays - dedicated industrial zones established for the space industry. For firms establishing their facilities and investing in the Space Bays, the Government will provide wage subsidies: 30 per cent for the first year, 20 per cent for the second and 10 per cent for the third. Likewise, the Tamil Nadu Government would offer a 50 per cent subsidy for the firms that wish to file patents. 

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"This policy isn’t just about satellites and rockets! It’s about creating a full-stack space ecosystem, right from payloads to platforms and launchpads to downstream analytics! We’re opening the gates to MSMEs, deep-tech startups, R&D units, and global majors, all through our upcoming TN Space Bays, which shall be special industrial zones designated to power orbital ambitions from our very own Tamil soil, read Minister TRB Rajaa's social media post. 

Tamil Nadu to house India's 2nd spaceport

In March 2025, the Indian Space Agency ISRO had announced the commencement of construction at the country's second spaceport. Meant to specifically launch India's smallest and newest rocket -the Small Satellite Launch Vehicle (SSLV), this upcoming facility is situated in Kulasekarapattinam in Tamil Nadu's Thoothukudi district. Thus far, the spaceport in Sriharikota, Andhra Pradesh, is India's lone gateway to space.

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The site is now ready for the commencement of the construction of the Upper Stage Assembly Facilities (UAF-I & UAF-II) for the preparation of the second and third stages of the 3-staged SSLV vehicle, along with a Launch Service Building (LSB), ISRO had said. 

The launch complex planned at Kulasekarapattinam is primarily to address the polar launches (towards the South Pole) of the Small Satellite Launch Vehicle (SSLV), which is capable of launching small satellites weighing up to 500 kg. The SSLV rocket has had three flights so far and has completed what ISRO terms the 'development phase'. Henceforth, the vehicle will perform operational missions. The upcoming spaceport is also meant to cater to SSLV-class rockets being built by Indian startups. 

Why does India need a second spaceport?

While the existing spaceport at Sriharikota is ideal for launching heavier rockets towards the east (equatorial orbits), a major challenge crops up when launching ISRO's Small Satellite Launch Vehicle and similar small rockets. When a rocket travels towards the South Pole from Sriharikota, the rocket would have to overfly the island nation of Sri Lanka. Given the immense risk of overflying a country, India's rockets are programmed to perform a manoeuvre to avoid the Lankan landmass. So, instead of flying in a straight line trajectory, the rocket is programmed to follow a curved path and take a turn.

While performing this turn manoeuvre, the rocket burns a considerable amount of fuel. While larger rockets can perform this manoeuvre without much impact on the rocket's payload carrying capacity, smaller rockets such as SSLV would lose a lot of fuel doing so. Losing fuel for the turn manoeuvre would mean that the rocket's payload carrying capacity is reduced, thereby affecting its cost efficiency. 

Which is why India had been looking for a location from where the smaller rockets could be launched in a straight line, without the risk of overflying Lanka. 

Situated in Tamil Nadu's southern region, Kulasekarapattinam's unique location helps SSLV-class rockets save on fuel and fly a straight approach towards the south pole. Given that smaller rockets are easier to build, assemble and launch in less time, it is important for India to have a dedicated spaceport for such smaller rockets. In order to create an ecosystem of allied industries near the upcoming spaceport, the Tamil Nadu Government is also establishing a Propellant park near the upcoming facility.