Private Space Sector's Wishlist for Union Budget 2023

The private space sector has high expectations from Finance Minister Nirmala Sitharaman as she presents the upcoming Union Budget. Stakeholders are seeking import holidays, GST exemptions, productivity-linked incentives, and increased government expenditure. Additionally, there's a strong push for the implementation of the Space Activities Act and more support for deeptech space startups.

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget next week, the private space sector has outlined its expectations. Key asks include import holidays, GST exemptions, productivity-linked incentives (PLI), and increased government spending as an anchor customer.

Awais Ahmed, co-founder and CEO of Pixxel Space, noted the need for more funding for space-related acquisitions, tax holidays, and a PLI scheme specifically for the space sector. Industry bodies such as the Indian Space Association (ISpA) and Satcom Industry Association (SIA-India) emphasized the importance of government expenditure to support the nascent sector.

ISpA Director General Lt Gen Anil K Bhatt (retd) advocated for the government to commit to procuring and adopting space technology solutions in various governance areas. He called for extensions of GST waivers and tax exemptions for satellite components and other space-related hardware. In addition, SIA-India President Subba Rao Pavuluri highlighted the importance of implementing the Space Activities Act to provide a regulatory framework that fosters the growth of deeptech space startups.