Indian Space Sector Gets INR 500 Crore Hike

By neub9
2 Min Read

The interim budget for 2024 has been released, with a significant increase in the budget allocation of INR 13,042.75 crore to the Department of Space for the fiscal year 2024-25. This is an increase from last year’s budget allocation of INR 12,543.91 crore.

This increase of INR 498.84 crore will provide a substantial boost to India’s Gaganyaan mission, other cost-effective missions, and international collaborations. The Indian government is focused on enhancing scientific research and development across various domains.

The Department of Science & Technology also received a budgetary allotment of INR 16,603.94 crore, which is an increase of INR 242 crore from the previous year. This allocation will be distributed among three key departments under the Ministry of Science and Technology.

Agendra Kumar, Managing Director of Esri India, commented on the budget, emphasizing the importance of fostering innovation and embracing cutting-edge technologies. The budget also allocates a 1-lakh crore corpus through a 50-year interest-free loan to incentivize private sector investments in Research and Development (R&D) and digital innovation. It supports the growth of the IT sector and skills development ecosystem.

Industry Expectations

The Satcom Industry Association-India (SIA-India) has presented ambitious budgetary demands to boost India’s space program, aiming to match the US’ spending. The industry body has sought adequate allocations for cybersecurity of critical space infrastructure.

Dr Subba Rao Pavuluri, President of SIA-India, emphasized the focus on propelling the Commercial Space Sector and supporting deeptech space startups. The Indian Space Associations (ISpA) has also provided key recommendations for the space sector, including expansion on GST exemption to satellites, launch vehicles, and ground equipment manufacturing.

ISpA recommends capital subsidy on infrastructure investments and increased government support for the private sector in India’s space industry.

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