India Boosts Space Budget for 2026-27, Capital Outlay Sees Sharp Rise

New Delhi: India has increased the allocation for the Department of Space to ₹13,705.63 crore for the financial year 2026-27, marking a 2.1 percent rise over the previous budget.

The increase signals continued policy support for India’s expanding space ambitions and the growing private space ecosystem.

A significant highlight is the rise in capital expenditure, which has climbed to ₹6,375.92 crore. This component funds infrastructure, advanced hardware development, launch systems, and mission-related assets.

The higher capital outlay is expected to support long term programmes led by the Indian Space Research Organisation, including technology development for upcoming missions and next generation launch capabilities.

Officials indicate that the enhanced allocation will help accelerate mission hardware development, strengthen launch vehicle production, and improve satellite manufacturing capacity. Funding also supports preparatory work for ambitious future programmes, including human spaceflight expansion and advanced planetary missions.

The move aligns with the government’s broader vision of positioning India as a competitive global space power while encouraging private participation through policy reforms and industry partnerships.

In recent years, India has opened its space sector to private players, enabling startups to participate in satellite launches, data services, and space technology manufacturing. The higher capital investment is expected to create more opportunities for collaboration between ISRO and emerging private firms.

With steady budgetary backing and rising private sector involvement, India’s space sector appears set for faster growth in the coming financial year.