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Budget wish-list: Space startups want critical infrastructure tag, assured govt demand
Union Budget 2026: India's emerging private space sector is urging the government to classify space assets as critical infrastructure. This move aims to unlock low-cost financing and boost private investment. Companies are requesting government funding to procure products and services from domestic players. Such support is seen as vital for scaling operations and making India a global leader in space and AI.
New Delhi: Ahead of the Union Budget, India's nascent private space industry wants the government to classify space assets as critical infrastructure and allocate funds to procure products and services offered by domestic companies.
"Being a big anchor customer, I think government support has to be around," Awais Ahmed, founder and CEO at Pixxel Space, told PTI. The government has taken good steps by introducing a research, development and innovation fund, and the deep-tech fund, and wants money to start flowing into the capex-heavy businesses having the potential to make India a powerhouse in space and AI sectors, he said.
The Indian Space Association (ISpA) and consultancy firm Deloitte have recommended that the government recognise space assets as critical infrastructure to allow low-cost, long-term financing for the sector. "Recognising space infrastructure as a distinct infrastructure sub-sector is essential to unlock scale, private investment, and global competitiveness," ISpA, which represents the space sector industry, said.
Indian private players now possess proven capabilities across satellites, launch systems, EO data, and ground infrastructure, but a lack of assured government demand constrains scaling, it said.
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Source: EconomicTimes
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