The Department of Space (DoS) has been allocated Rs 13,416.2 crore, marking an increase from the revised estimates of Rs 11,725.7 crore in 2024-25. Of the allocated amount, Rs 7,312.6 crore earmarked for revenue expenses and Rs 6,103.6 crore for capital outlays.
In percentage terms, the Rs 13,416.2 crore is 14.4% more from the revised estimates for 2024-25, but only around 2.9% more than the 2024-25 allocation announced in the budget.The actual allocation for 2024-25 will become public after the current fiscal ends and DoS insiders anticipate the revised allocation for 2025-26 to also change in the course of the year.
The 2025-26 budget continues to demonstrate a strong focus on space technology, with Rs 10,230.2 crore allocated to various Isro centers and projects, including the Vikram Sarabhai Space Centre (VSSC), UR Rao Satellite Centre (URSC), and Human Spaceflight Centre (HSFC). Space Applications received the second-largest share with Rs 1,706.79 crore, supporting centers like the Space Applications Centre (SAC) and National Remote Sensing Centre (NRSC).
Notably, the Space sciences segment saw a significant boost with Rs 371 crore allocated for various programmes and initiatives. The budget also provides support for autonomous bodies, with the Indian Institute of Space Science and Technology (IIST) receiving Rs 150 crore and the Physical Research Laboratory (PRL) getting Rs 240 crore.
Commercialisation
Space regulator-cum-promoter Indian National Space Promotion and Authorisation Centre (IN-SPACe), the single-window nodal agency to permit and oversee the activities of non-government private entities which include building of launch vehicles, satellites, providing space based services, sharing of test facilities, setting up incubation centres, etc, has been allocated Rs 70 crore as part of the money earmarked for DoS.
And, aside from the Rs 13,416.2 crore, Space PSU NewSpace India Limited (NSIL) is expected to receive investments worth Rs 1,030 crore through Internal and Extra Budgetary Resources (IEBR), highlighting the government’s push towards space sector commercialisation.
NSIL is established to tap the benefits of R&D carried out by the Department of Space and Isro. The company will spearhead the commercialisation of various space products including productionisation of launch vehicles, transfer of technologies and marketing of space products.
Industry welcomes
Indian Space Association (ISpA) director-general Lt Gen (retd) AK Bhat, said: “This year, there has been a good increase from the revised estimates of last year, but as we see it, the money that Isro needs for various projects will always come. What is important is the government’s intent and even that is looking positive for the sector.”
Pointing out that the budget reflects a forward-looking approach to strengthening India’s vision, ensuring the nation remains a global leader in next-generation technologies through robust public-private collaborations, SatCom Industry Association-India (SIA-India) director-general Anil Prakash and president Subba Rao Pavuluri said the National Geospatial Mission, aligned with the PM Gati Shakti initiative, will utilise satellite data for urban planning, infrastructure development, and modernisation of land records.
“This initiative will enhance India’s geospatial capabilities and ensure efficient resource planning and disaster management using real-time satellite imagery and analytics,” SIA-India said.
Customs duty reduced to nil
In a move that the industry had been batting for, the Centre has reduced customs duty on goods used in building of launch vehicles and launching of satellites to zero from the existing 5% and the same has been extended for ground installations for satellites, including space and consumables.
Goldie Dhama, partner, Deloitte India, said: “Reduction of custom duties to Nil for both should allow both global and domestic companies to make further investment for manufacturing in India and growth of the space sector.”
ISpA director-general Lt Gen (retd) AK Bhat, said: “We’ve been making some noise about this and we are glad that the govt has decided to implement it. This will benefit the industry significantly.”
