India Announces ₹1,500 Crore Push to Boost Space Technology Sector

The government has unveiled a series of initiatives to strengthen India’s space technology ecosystem, including a ₹1,500 crore financial support package and a liberalised Foreign Direct Investment (FDI) policy to attract investment and expand private participation in the sector.

In a written reply to the Rajya Sabha, Minister of State for Space Dr. Jitendra Singh said the government has introduced several measures to promote space manufacturing, innovation and commercialisation of indigenous technologies.The initiatives include the establishment of a ₹1,000 crore Venture Capital (VC) Fund to support space startups and the launch of a ₹500 crore Technology Adoption Fund (TAF) to help develop, demonstrate and commercialise homegrown space technologies.

The government has also enabled Non-Government Entities (NGEs) to access ISRO facilities at discounted rates and receive technical support, mentorship and infrastructure assistance. The measures aim to create a stronger private space ecosystem by encouraging companies to participate in satellite development, manufacturing and space applications.

A Technical Centre has been established to provide affordable testing, validation and simulation facilities for space systems. Private players will also get opportunities to test technologies through the PSLV Orbital Experimental Module (POEM) platform.

The government is promoting the Satellite Bus as a Service (SBaaS) initiative to accelerate satellite development and strengthen indigenous capabilities. It is also facilitating the transfer of ISRO-developed technologies to industries for commercial use.Dr. Singh said skill development programmes are being implemented to meet the growing workforce needs of the space sector. States are also being encouraged to establish space manufacturing clusters and common testing facilities to support industrial growth.

The IN-SPACe initiative is conducting outreach programmes with startups, MSMEs, academia and industry stakeholders to spread awareness about policy reforms, funding opportunities and regulatory frameworks.

The government said India’s private space sector is still in a nascent stage, and these interventions are aimed at building infrastructure, promoting innovation and creating a competitive space economy.