Private Space Sector's Budget Wishlist: Tax Breaks and Govt Support

The private space sector seeks tax exemptions, holidays, and increased government spending on space-related acquisitions from Finance Minister Nirmala Sitharaman in the upcoming Union Budget. Industry bodies stress the importance of government demand, regulatory clarity, and support for startups to drive growth in this nascent industry.

The private space sector has laid out a series of expectations for Finance Minister Nirmala Sitharaman as she prepares to present the Union Budget next week. Key demands include import holidays, GST exemptions for launch vehicle components, productivity-linked incentives (PLI), and increased government spending on space acquisitions.

Awais Ahmed, co-founder and CEO of Pixxel Space, emphasized the need for more financial support, including tax holidays and the PLI scheme for the sector. Indian Space Association (ISpA) and Satcom Industry Association (SIA-India) echoed these sentiments, urging the government to act as an anchor customer for the nascent private space industry.

Lt Gen Anil K Bhatt (retd), Director General of ISpA, called for government commitment to adopting space technology across various governance areas and extending GST waivers. Emphasizing regulatory clarity, Bhatt highlighted the importance of promptly implementing the Space Activities Act. SIA-India representatives also stressed the need for demand generation to drive non-linear growth in this sunrise industry.