How Union Budget 2025 can bridge structural gaps in India's space sector
Produced by Tarun Mishra
Produced by Tarun Mishra
As India prepares for the Union Budget 2025, the space sector faces key challenges that require strategic investments and policy reforms. Here are seven areas where the budget could play a crucial role in shaping the future of India’s space industry.
India has made significant advancements in space exploration, from the Chandrayaan-3 mission to the upcoming Gaganyaan project. To maintain this progress, the budget needs to allocate resources for long-term initiatives, including an Indian space station and next-generation launch vehicles.
The space sector witnessed a sharp decline in investments in 2024, with funding dropping by 55% compared to 2023. The budget must introduce measures to attract domestic and foreign investment, such as financial incentives for private players and expanded public-private partnerships.
The regulatory framework for space activities remains incomplete. The pending Space Activities Bill and the slow implementation of the Indian Space Policy-2023 need attention. The budget should prioritise funding for legal and policy development, ensuring clear guidelines for satellite licensing, space debris management, and resource utilisation.
ISRO generates significant returns on investment, but its annual budget remains much lower than space agencies like NASA. A proposed 20-30% increase in funding would support critical projects such as heavy-lift rockets, deep-space exploration, and satellite technology advancements.
Despite reforms like IN-SPACe and relaxed FDI norms, private sector participation in space remains limited. The budget should introduce tax incentives, grants for innovation, and simplified regulations. Expanding the Rs 10 billion venture capital fund from 2024 could further support startups reaching key milestones.
A focus on research and development is essential for advancing space technology. The budget should allocate resources for developing indigenous capabilities in propulsion systems, satellite manufacturing, and AI-driven space applications, ensuring India remains competitive in the global space industry.
Sustainable space practices, including space debris mitigation and responsible resource exploitation, require dedicated policies and funding. The budget should also support educational programs to develop skilled professionals, ensuring inclusive growth in the space sector.
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