(IANS)
BENGALURU: The Indian Space Association (ISpA) has urged the Centre to use the Union Budget 2026–27 to deliver a targeted fiscal and regulatory push that can anchor India’s ambition of becoming a leading global space power, with private industry as a core driver of growth.In recommendations submitted to the government, ISpA said that while the Space Policy 2023 has enabled private participation, the sector now needs structural support to overcome its capital-intensive nature and long gestation cycles of five to seven years. “India stands at a defining moment in its space journey. By recognising space as critical infrastructure, mandating private sector participation, rationalising taxes, incentivising R&D, and strengthening regulatory certainty, the Budget can decisively shift the govt’s role from provider to partner and anchor buyer,” ISpA director-general Lt Gen (retd) AK Bhatt, said.It flagged the absence of formal infrastructure status for space assets as a key bottleneck, limiting access to long-term, low-cost finance. “Recognising ‘space and satellite infrastructure’ as a distinct sub-sector under the Harmonised Master List of Infrastructure, it said, could cut the cost of capital by 2–3% and unlock bank lending, DFI [development finance institutions] funding through institutions such as NaBFID, infrastructure bonds, viability gap funding, insurance and credit-enhanced instruments,” it said. ISpA has proposed that the infrastructure classification should explicitly cover launch vehicles and spaceports, satellite manufacturing and integration facilities across LEO, MEO and GEO orbits, ground stations and TTC [telemetry, tracking and command] networks, mission control centres, earth observation and communication constellations, navigation systems, and space situational awareness networks.On demand creation, the association has sought a mandatory procurement policy requiring that at least 50% of all government procurement for space-based services, hardware and missions be sourced from Indian private entities, where viable capability exists. “The scope would include satellite manufacturing and payloads, earth observation data and analytics, Satcom services, ground infrastructure, launch subsystems and deep-tech components. Ministries such as defence, telecommunications, agriculture, environment and urban affairs have been identified as potential anchor customers, with oversight by IN-SPACe,” it said.Citing global practice, ISpA pointed out that Nasa sources over 80% of its systems from industry, while Esa follows a 90% industry-led execution model.ISpA also outlined a detailed fiscal package, including PLI schemes for satellites, launch vehicles and critical subsystems, a five-year tax holiday for space manufacturing and services, R&D tax credits of 20–30%, accelerated depreciation on satellites and rockets, and a 2–5% interest subvention on term loans for space manufacturing, launch services and R&D.Other proposals include GST reforms to treat satellites and launch services as zero-rated supplies to enable full input tax credit, SEZ-like benefits for space manufacturing clusters, higher FDI limits of 74% for launch vehicle companies under the automatic route, and enactment of a comprehensive Space Act to provide regulatory certainty. Go to Source
