Industry seeks 50% govt sourcing in space sector

RUN-UP TO THE BUDGET 2026-27

- OJASVI GUPTA

THE PRIVATE SPACE industry has urged the government to mandate that at least 50% of all public procurement of space-related hardware, services and missions be sourced from domestic companies, stating that assured demand is now the single most important factor for scaling the sector.

In recommendations submitted ahead of the Union Budget, the Indian Space Association (ISpA), along with Deloitte India, said a formal procurement mandate would provide the demand visibility needed for private players to expand capacity, attract long-term capital and move from pilot projects to commercial scale operations.

The industry body said that while the space policy of 2023 opened the sector to private participation, growth has been constrained by the absence of predictable government orders.