Budget 2026: India’s space sector gets 2% marginal hike
The emphasis is more on capital outlay, which has risen to Rs 6,375.92 crore in FY 2026-27 from previous budget allocation of Rs 6,103.63 crore in FY 2025-26
The Department of Space has been allocated Rs 13,705.63 crore in the Union Budget for 2026-27, a slight increment of above 2 percent compared to the budget estimate of Rs 13,416.20 crore in 2025–26.
The emphasis is more on capital outlay, which has risen to Rs 6,375.92 crore in FY 2026-27 from the previous allocation of Rs 6,103.63 crore in FY 2025-26. Rs 12,822.81 crore of the total allocation of the budget to the space sector was allocated to space applications, space sciences, and INSAT satellite systems.
Dr Pawan Goenka, Chairman of Indian National Space Promotion and Authorization Centre (IN-SPACe) and SCALE Committee, said, “The Union Budget 2026 continues to strengthen the foundations required for sustained economic growth. With wide-ranging reforms across sectors, the focus on manufacturing with a boost to creating Champion MSMEs, and infrastructure reflects an understanding that scale and resilience are built through stable policy and institutional support."
Goenka also shared that simplification of tax processes, decriminalisation of compliance-related provisions, and GST rationalisation will ease adherence, improve predictability for businesses, and encourage entrepreneurship.
“The proposal to establish dedicated Rare Earth Corridors across mineral-rich states is a timely step towards securing critical materials, strengthening domestic value chains, and reducing strategic dependencies. At the same time, targeted customs duty exemptions to support domestic manufacturing and supply-chain integration will further contribute to a more competitive, resilient economy where businesses can invest with confidence and plan for the long term,” he said.
To promote astrophysics and astronomy, four telescope infrastructure facilities will be set up or upgraded - the National Large Solar Telescope, the National Large Optical-infrared Telescope, the Himalayan Chandra Telescope, and the COSMOS-2 Planetarium.
Lt. Gen. AK Bhatt (retd.), Director General, Indian Space Association (ISpA), is hopeful of a more investment-friendly environment for science and technology and will encourage the private sector.
“Alongside this, the announcement on expanding telescope infrastructure and learning facilities is a meaningful step towards strengthening India’s scientific base in astrophysics and astronomy. Together, these measures can improve observational capabilities, enable long-term research and strengthen collaboration between ISRO, academia and industry, gradually enhancing India’s contribution to global space science and the broader space ecosystem,” he said.
India, in the next few years, will be focusing on lunar missions and Gaganyaan.
