India’s nascent private space industry may not have got any direct mention in the Union Budget 2026-27, but there’s enough to strengthen the country’s space ecosystem, sector experts feel.

In a quick post-budget comment, Pawan Goenka, Chairman of Indian National Space Promotion and Authorization Centre (IN-SPACe), 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 said.

The SatCom Industry Association (SIA-India), which had hoped for targeted incentives in space manufacturing, GST rationalisation for space-grade inputs, clearer HSN classifications for space components, and a more predictable scaling of the space budget in line with India’s ambitions, said there were no direct announcements in the Budget. However, the absence of a direct fiscal boost for the space sector is compensated through several enablers like trade facilitation and electronics manufacturing to startup financing and digital infrastructure, which indirectly strengthen the space ecosystem. “For a sector that underpins connectivity, disaster response, and national resilience, space is increasingly a critical layer of infrastructure. While this may not be a breakthrough Budget for space, it is also not a setback. It improves the operating environment and provides stability, and we hope future cycles will build on this foundation with more sector-specific impetus," Anil Prakash, Director General, SIA-India, said.

Meanwhile, Lt Gen. A.K. Bhatt (retd.), Director General of Indian Space Association (ISpA), said the Budget, with its emphasis on easing processes and creating a more investment-friendly environment for science and technology, will encourage greater private sector participation. “The increase in ISRO’s allocation to ₹13,705.63 crore in FY 2026–27 is an important signal that will help support deeper private sector participation in ISRO-led programmes across launch vehicles, satellites, and scientific missions. 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.

Vishesh Rajaram, founding partner at Speciale Invest, points out that the Budget reinforces a long-term, capability-building approach to deep technology in India. “Continued support for national missions across emerging technologies—semiconductors, space, clean energy, AI and quantum—signals policy continuity that is essential for deep-tech ventures, where innovation cycles are long and capital requirements are high.
The emphasis on digital public infrastructure and fibre connectivity is equally strategic. Robust, nationwide connectivity underpins data-intensive and hardware-led innovation, enabling deep-tech startups to develop, test, and scale solutions across manufacturing, defence, climate, healthcare and space ecosystems," Rajaram explains.