NEW DELHI: Ahead of the Union Budget, India’s nascent private space industry wants the government to classify space assets as critical infrastructure and allocate funds to procure products and services offered by domestic companies.
“Being a big anchor customer, I think government support has to be around,” Awais Ahmed, founder-CEO, Pixxel Space, said.
The Centre has taken good steps by introducing a research, development and innovation fund, and the deep-tech fund, and wants money to start flowing into the capex-heavy businesses having the potential to make India a powerhouse in space and AI sectors, he said.
The Indian Space Association (ISpA) and consultancy firm Deloitte have recommended recognition of space assets as critical infrastructure to allow lowcost, long-term financing for the sector.
“Recognising space infrastructure as a distinct infrastructure sub-sector is essential to unlock scale, private investment, and global competitiveness,” ISpA said.
Indian private players now possess proven capabilities across satellites, launch systems, EO data, and ground infrastructure, but a lack of assured government demand constrains scaling, it said.
“A formal procurement mandate will anchor industry growth while allowing ISRO to focus on strategic and exploratory missions,” the space industry body said.
ISpA pointed out that NASA procures 80 per cent of its systems from the industry, while the European Space Agency also follows a 90 per cent industry-led procurement model.
“Recognising space infrastructure as critical infrastructure can unlock low-cost financing, while rationalising taxes and duties on specialised launch components, along with reducing Customs GST and indirect taxes for deep tech, can significantly alleviate cost pressures,” said Srinath Ravichandran, founder and CEO at Agnikul Cosmos.
Equally important will be deeper, outcome-driven collaboration with ISRO and IN-SPACe, coupled with clearer long-term procurement, said Ravichandran, whose Agnikul Cosmos plans the maiden orbital flight of its launch vehicle Agnibaan to place small satellites in the low Earth orbit.
Suyash Singh, co-founderCEO, GalaxEye, called for clarity on long-term procurement policies.