The previous Union Budget tells an exciting story about where we are headed next. The government had allocated Rs 13,416 crore to the Department of Space for 2025-26, which runs from April 2025 to March 2026. This was slightly more than last year's Rs 13,043 crore a modest 3 per cent increase. But this year, there are increased expectations that it might be increased to 10 per cent given the kind of traction the Indian space sector is seeing.
Space budget takes care of everyday needs – paying scientists, maintaining existing facilities, running smaller projects, and keeping our satellite ground stations working smoothly. Then money is allocated in building new things – powerful rockets, advanced satellites, upgraded launch pads, and cutting-edge research labs. What is impressive is how efficiently ISRO uses this money. Unlike America or China, which pour hundreds of billions into space, India spends less than 0.3 per cent of our total national budget on space activities. Yet, every rupee generates more than Rs 2 in returns through services like accurate weather forecasting that saves farmers from crop losses, GPS navigation that helps delivery drivers find addresses, and communication satellites that connect remote villages to the digital world.
Currently, the budget is powering some thrilling projects. The most talked-about one is Gaganyaan, our first attempt to send Indian astronauts into space. The money also funds dozens of satellites being launched for watching crops from space, predicting cyclones days in advance, providing internet in the Himalayas, and helping fishermen find the best catch zones. Then there is support for private startups through IN-SPACe, a special body created to help young entrepreneurs build their own rockets and satellites. The government announced a Rs 1,000 crore fund earlier to encourage these innovators, showing that space is no longer just for government scientists but for anyone with big ideas.
“The 2026-27 budget could jump significantly – possibly reaching Rs 15,000-18,000 crore or even higher because India's most ambitious missions are scheduled for the next couple of years. The first crewed Gaganyaan flight is planned for 2026 or early 2027, and sending humans safely to space and bringing them back is incredibly expensive. Chandrayaan-4, targeted for 2027, aims to do something even more complex – bring back actual Moon rocks and soil to Earth. This requires a spacecraft that can land, scoop samples, lift off from the Moon, and return home – like a three-way journey instead of a one-way trip. Beyond these missions, there is a bigger vision at play. Our space economy is currently valued at about $8 billion, but the government wants to grow it to $44 billion in the coming years,” remarked space analyst Girish Linganna.
There is no doubt that India stands at a decisive inflection point in its space journey. Over the past decades, the country has earned global respect as a reliable, cost-effective launch provider and a technologically capable space power. Yet, in a rapidly evolving global space economy, reliability alone is no longer sufficient. The moment has arrived for India to elevate its ambitions from launching for the world to leading the world in aerospace innovation, research, and strategic space capabilities.
“For a nation expected to sustain human spaceflight, increase launch cadence, support private industry, and pursue frontier research, incremental increases are no longer sufficient. What is required is a multiple-fold, sustained expansion of the space budget over the coming years. A comparison with global peers underscores this gap clearly. NASA operates with an annual budget exceeding US dollar 25 billion, enabling deep-space exploration, advanced human spaceflight, planetary science, and aggressive commercialisation. The China National Space Administration is estimated to spend $12–15 billion annually, funding its space station, lunar ambitions, reusable launch systems, and integrated civil-military programmes. Roscosmos, despite economic constraints, continues with $3–4 billion, prioritising human spaceflight, strategic launches, and sovereign capabilities. In comparison, India is attempting to achieve parallel objectives with a fraction of these resources. This disparity reflects not a lack of capability, but constrained financial ambition. Closing this gap is essential for credibility, scale, and sustained leadership in an increasingly competitive global space environment,” Srimathy Kesan the founder and CEO of SpaceKidz India told THE WEEK.
India is already recognised as a major global launch hub, offering dependable and cost-effective access to space. However, technical excellence does not automatically translate into market dominance. “What remains critically underdeveloped is aggressive, focused, and professional global marketing. Space today is a competitive commercial market, not merely a scientific or strategic domain. India urgently requires an exclusive, ring-fenced marketing budget for space activities, separate from mission execution and R&D expenditure. Launch capability without global visibility limits growth; structured promotion converts capability into contracts,” added Kesan.
Experts point out that a dedicated international marketing and business development apparatus must be empowered to actively engage satellite operators, space agencies, and private firms worldwide. This team should consist of professionals with global exposure, commercial acumen, and deep technical understanding—capable of negotiating long-term launch agreements rather than one-off missions. Leading space powers do not wait for customers to arrive; they build narratives, showcase reliability, publish multi-year manifests, and position themselves as indispensable partners. For India, systematic marketing would ensure predictable launch pipelines, stronger international partnerships, and steady revenue inflows that can be reinvested into research and infrastructure. Without this shift, India risks remaining a low-cost option rather than a premium, preferred choice.
Sustaining growth also demands scale and predictability. More launches are essential, but equally critical is the creation of a clear, structured launch manifest dedicated to international organisations. A transparent, multi-year international launch calendar enhances customer confidence, enables better mission planning, and establishes India as a reliable long-term partner. Ad hoc arrangements are no longer viable in a market where responsiveness, reliability, and planning certainty define leadership.
Beyond launches and commercialisation, true global leadership in space requires a comprehensive ecosystem that integrates research, industry, and education. It is high time India establishes an exclusive Space Research Park and a dedicated Space University, conceived as interconnected pillars of a national space ecosystem. Implemented through a robust Public–Private Partnership (PPP) model, these institutions would combine government vision, private-sector agility, and academic excellence. A Space Research Park would co-locate government laboratories, private startups, defence R&D units, advanced manufacturing facilities, and international collaborators accelerating innovation, shortening development cycles, and bridging the gap between research and deployment.
Experts point out that a university specialising in space technology would serve as the talent backbone of the ecosystem, producing specialists not only in spacecraft engineering and space science, but also in space policy, space law, orbital sustainability, space data analytics, and commercial space management. Through PPP implementation, such institutions would ensure shared risk, private capital infusion, global competitiveness, and long-term sustainability, while retaining strategic national control. Together, they would institutionalise India’s space leadership for decades rather than individual missions.
“This year, our focus should be on addressing structural cost disadvantages that hinder the economic viability of domestic space manufacturing. Introducing dedicated, granular HSN/SAC codes for space-grade components and services distinct from general aerospace or electronics — would reduce GST burdens, unblock input tax credits, and provide clarity on domestic value addition and import dependence. Similarly, extending SEZ-equivalent indirect tax benefits—such as zero-rated GST, duty-free procurement, and streamlined customs to authorised space-tech manufacturers can lower project costs, unlock working capital, and make Indian companies globally competitive. These are not large subsidies, but targeted tax and classification reforms that can meaningfully improve ease of doing business, attract private and foreign investment, and accelerate India’s ambition to scale its Space economy,” remarked Keyur Gandhi, Director - Space Regulatory and Commercialisation, Dhruva Space.
Of course, the final budgetary amount will depends on how our economy performs, what inflation looks like, and competing needs like defence or healthcare. But history gives us hope. Whenever major missions approached, budgets increased. Before Chandrayaan-3's successful landing, there was extra funding. With Gaganyaan ready to make India only the fourth nation to independently send humans to space, the financial support will likely match the ambition. The 2025-26 allocation keeps our space programme moving steadily forward, but 2026-27 could be the year when India's space story accelerates dramatically.