Space industry seeks critical infra status

‘The space sector in India has put forth demands, including considering the industry as a critical infrastructure, demand creation through 50 percent government procurement from private entities, production linked incentive (PLI), and tax sops, for the upcoming Budget 2027.

- SHINE JACOB

Given the high upfront costs, rapid technological obsolescence, and delayed revenues, the space sector requires a tailored fiscal framework distinct from conventional manufacturing, Indian Space Association (Ispa) said.

Ispa cited that the government can consider PLI schemes for satellites, launch vehicles, space-grade components, and critical subsystems, while also providing a five-year tax holiday for space manufacturing, launch services, and space-based service providers.