New Delhi, Feb 1: Giving a much-needed boost to the space sector, Finance Minister Nirmala Sitharaman on Saturday announced an allocation of Rs 13,415.20 crore for the Department of Space in the Union Budget 2025-26.
In the latest budget, Rs 6,103 crore has been earmarked for capital outlay on space research. The move is expected to facilitate various ambitious projects, including satellite launches and deep-space missions.
The enhanced budget comes as India looks forward to upcoming major space launches including the Ganganyaan — India’s human spaceflight mission — as well as the Moon mission, setting up the Indian space station, and Chandrayaan-4.
The increased investment is expected to integrate space-based applications into critical sectors such as agriculture, disaster management, and urban planning. This is a remarkable increase from previous budgets and reinforces the government’s commitment to growing India’s space ambitions.
The Union Budget 2024-25 allocated Rs 13,042.75 crore for the space sector. A Rs 1,000 crore venture capital fund aimed at boosting private sector participation in India’s space industry was also launched last year.
This rise in funding in the space Budget follows India’s impressive achievements in space technology, such as the successful Chandrayaan-3 lunar mission and the Aditya-L1 solar observation project, underscoring the nation’s growing space capabilities.
“The increase in the space budget is a significant step towards strengthening India’s space ecosystem, fostering innovation, and enhancing global competitiveness,” Indian Space Association (ISpA) Director General, Lt. Gen. A.K. Bhatt (retd) said. The government also removed customs duty on ground installations for satellites, including spares, consumables, and essential goods used in building launch vehicles and facilitating satellite launches.
“This long-awaited reform aligns with the industry’s needs, and we appreciate the government’s responsiveness to the sector’s requirements,” Bhatt said. Meanwhile, the Finance Minister also announced the launch of a National Geospatial Mission in the Budget 2025-26. The mission aims to modernise land records and enhance urban planning across India.
This initiative will leverage the existing PM Gati Shakti framework to develop foundational geospatial infrastructure and data, facilitating improved design and execution of infrastructure projects, she said. Geospatial refers to data or information that is associated with a specific location on the Earth’s surface.
The National Geospatial Mission is expected to significantly impact various sectors, particularly in urban development and land management. The experts noted that the announcement of the National Geospatial Mission shows the growing commitment of the government to use the downstream capabilities of the space tech sector.
“The users in the government, private sector, and the industry have lived with the lack of good foundational data for a very long time. The National Geospatial Mission will provide the necessary resources to create geospatial data that will serve as a foundation for social and economic development,” Esri India Managing Director Agendra Kumar said.
IANS