Indian Space Association Advocates for Critical Infrastructure Status in Union Budget 2026-27
The Indian Space Association (ISpA) is advocating for the recognition of the space sector as 'critical infrastructure' in the Union Budget 2026-27 to boost investments and competitiveness. This designation could reduce capital costs by 2-3% and is accompanied by recommendations for a 50% government procurement mandate for domestic space products, along with fiscal incentives like tax holidays and R&D credits to support industry growth and private sector involvement.
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The Indian Space Association (ISpA) is urging the government to designate the space sector as 'critical infrastructure' in the Union Budget 2026-27 to attract investments and enhance competitiveness. This status is expected to unlock long-term financing and reduce capital costs by 2-3%.
ISpA recommends including 'space and satellite infrastructure' in the Harmonised Master List of Infrastructure, covering aspects like launch vehicles, satellite manufacturing, and ground stations. To stimulate demand, ISpA proposes a 50% government procurement mandate for space-related services and products from Indian private firms. Additional fiscal measures suggested include Production-Linked Incentive (PLI) schemes, a five-year tax holiday for space manufacturing, R&D tax credits, and regulatory reforms to facilitate industry growth and private sector participation.
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