In a recent interview with Mint, Pawan Kumar Goenka, chairman of the Indian National Space Promotion and Authorization Centre (In-Space), mentioned that the body has submitted its industry demands to the finance ministry, following the standard procedure for government agencies. While specific details of the demands were not disclosed, industry insiders suggest that the upcoming Union Budget could include strategic incentives to boost domestic demand in the space sector.
Industry veterans emphasize the importance of building scale for the private space sector through incentives such as Production Linked Incentives (PLI) for key components, lower GST rates, tax holidays for space startups, reduced import duties, and access to low-rate financial loans. Anil Kumar Bhatt, director general of the Indian Space Association (ISpA), highlights the significance of internal support in addition to Foreign Direct Investment (FDI) to foster growth in the sector.
Experts like Pawan Kumar Chandana, CEO of Skyroot Aerospace, believe that increased budget allocations for In-Space could have a significant impact on supporting numerous startups in the industry. In-Space boasts members such as Larsen & Toubro, Bharti Airtel, Bharat Forge, Godrej & Boyce, and Hindustan Aeronautics Ltd.
Beyond technological development, industry leaders stress the need for funding early-stage ventures to stimulate demand in the space industry. Key additions to the Budget may include setting up new R&D and testing facilities across different regions, as well as offering tax holidays, manufacturing incentives, and defense contracts to government agencies.
Chaitanya Giri, a space consultant and associate professor, emphasizes the potential for the space sector to provide downstream geospatial utilities with government support. The Budget could play a crucial role in enabling such initiatives and positioning India as a global player in the space industry.
While there is optimism about increasing demand for the private space sector within government agencies, some experts advise caution in providing blanket incentives. They believe that India’s existing talent in satellite manufacturing and launch vehicle technology can make the country a competitive player on a global scale. Strategic allocation of funds and targeted efforts to tap into global markets are seen as key priorities for the sector’s growth.
Overall, the upcoming Budget is expected to focus on building India’s capabilities to cater to global markets, with an emphasis on strategic allocations that align with the sector’s long-term goals. The government’s support through budgetary measures will be crucial in propelling the space industry towards achieving its potential in the international arena.