Indian states are engaging in a competitive race to embrace space technology, with several states drafting space policies, establishing space parks, and offering incentives to attract private space companies and startups. This competition is expected to drive investments and create specialized hubs within the country.

States Leading the Charge

Gujarat took the lead by unveiling its SpaceTech Policy 2025-2030, becoming the first Indian state with a dedicated space sector policy. This policy provides fiscal and non-fiscal support for a range of space activities, including manufacturing and application design. Tamil Nadu followed closely, announcing its own space industrial policy to promote private sector engagement and leverage technologies developed by ISRO. Karnataka, Maharashtra and Telangana are also developing capabilities to establish space manufacturing clusters in their regions.

Incentives and Support

These space policies offer a variety of incentives to attract companies and startups. Tamil Nadu's policy includes capital subsidies of up to 20% for eligible enterprises and proposes a ₹10 crore 'Space Tech Fund' to support space-tech startups. The state also plans to develop new infrastructure for satellite testing and skill development programs in Chennai. Gujarat offers financial support for launch costs and patent filing, in addition to assistance under the Gujarat Electronics Policy. Ventures can also benefit from incentives under the Gujarat IT/ITeS Policy, while space tech startups can receive assistance through the Deep Tech Start-up Programme.

Strategic Advantages

States see an opportunity to gain priority access to central projects, funding, and collaborations with ISRO by demonstrating initiative through land allocation, infrastructure development, ease of doing business, and policy support. By creating a supportive ecosystem, states hope to attract investments and generate revenue in the rapidly growing space sector.

National Initiatives

The central government is also playing a crucial role in promoting the space sector. The Indian Space Policy 2023 and amendments to foreign direct investment (FDI) rules have liberalized foreign investment in India's space sector. The Indian National Space Promotion and Authorization Centre (IN-SPACe) was established to promote private sector participation in space activities and serve as a single-window autonomous body. IN-SPACe has also introduced a ₹5 billion Technology Adoption Fund to provide startups with up to 60% cost coverage for commercialization efforts. Furthermore, a ₹10 billion venture capital fund has been created to support space startups.

Looking Ahead

With the Indian space industry aiming to reach $44 billion by 2033 and capture 8% of the global market, the competition among states is expected to intensify. This drive is facilitated by government reforms allowing private sector participation in space activities. These reforms include the delineation of roles for entities like IN-SPACe, ISRO, and NSIL and the announcement of Space Vision 2047. This vision includes establishing the Bharatiya Antariksh Station (BAS) by 2035 and landing an Indian on the Moon by 2040. These efforts, combined with international collaborations and a focus on technological advancements, are positioning India as a key player in the global space arena.