Space Sector Advocates for PLI Scheme, Tax Holidays, Increased Satellite Data Use in Union Budget

New Delhi: The Indian space sector is urging the government to implement incentives to boost its growth and utilization in the forthcoming Union Budget 2025-26. Top industry representatives requested a production-linked incentive scheme, tax holidays, and reduced taxes to encourage investment and establish local manufacturing.

The Indian space economy has been valued at $8.4 billion and private players, such as Pixxel Space, have begun developing satellites and launch systems. Expectations are that the sector will witness significant growth over the next decade.

"We would be greatly helped if something like a production-linked incentive scheme for the space sector were to be introduced in the budget," said Awais Ahmed, Chief Executive Officer of Pixxel Space. "Infrastructural development needs substantial investment for the space sector; hence, incentivizing companies to set up local manufacturing factories will be beneficial."

Lt Gen A K Bhatt (retd), Director General of the Indian Space Association, requested import exemptions, lower Goods and Services Tax (GST) rates, and tax holidays for a specific duration.

Additionally, Bhatt stated that the government should allocate more budget for space-based applications. "A lot of money is expected for science and research," he highlighted. The Ministry of Road Transport plans to utilize satellite data to collect tolls on highways.

Pixxel Space co-founder Kshitij Gokul stressed the importance of increased use of satellite data in various sectors. The government has already approved a 52-satellite constellation project for the defence sector, which will be built by private companies.

Industry experts are hoping that the Union Budget will provide necessary fuel to drive growth and progress in India's rapidly expanding space sector.