Budget FY27: Industry seeks more funds for space sector

Ahead of the Union Budget, India’s emerging private space industry has called on the government to classify space assets as critical infrastructure and step up budgetary allocations to procure products and services from domestic companies, saying stronger state backing is essential for scaling up the sector.

- 

“Being a big anchor customer, I think government support has to be around,” said Awais Ahmed, founder and CEO of Pixxel Space. He said initiatives such as the research, development and innovation fund and the deep-tech fund were positive, but stressed that capital must now begin flowing into capex-heavy businesses that could make India a global leader in space and artificial intelligence.

Industry body Indian Space Association (ISpA) and consultancy firm Deloitte have jointly recommended that space assets be recognised as critical infrastructure to enable access to low-cost, long-term financing.

“Recognising space infrastructure as a distinct infrastructure sub-sector is essential to unlock scale, private investment, and global competitiveness.” ISpA said.