The interim budget 2024 is out and the Indian government has announced a significant increase in the budget allocation of INR 13,042.75 crore to the Department of Space for FY 2024-25. In last year’s annual budget, the total allocation for the Department of Space was INR 12,543.91 crore.
There is a significant difference of INR 498.84 crore between FY 2023-24 and FY2024-25. This fund will provide huge boost to India’s Gaganyaan mission, other cost-effective missions and will foster international collaborations.
The government of India’s focus is on boosting scientific research and development across various domain. The Department of Science & Technology also received a budgetary allotment of INR 16,603.94 crore, which is a noteworthy increment of INR 242 crore from FY2023-24’s budget of INR 16,361 crore.
The allocation will be distributed among three key departments under the Ministry of Science and Technology. The Department of Science and Technology is going to receive INR 8,029.01 crore, while the Department of Biotechnology is going to receive INR 2,251.52 crore. Additionally, the Department of Scientific and Industrial Research will receive INR 6,323.41 crore.
Agendra Kumar, Managing Director, Esri India says, “The 2024 Interim Budget has placed a robust emphasis on fostering innovation and embracing cutting-edge technologies to realize the ambitious goal of ‘Viksit Bharat by 2047.’ It rightly underscores the pivotal role that technology plays in shaping our economic landscape.”
A notable strategic move is the allocation of a 1-lakh crore corpus through a 50-year interest-free loan, aimed at incentivizing the private sector to elevate their investments in Research and Development (R&D) and propel digital innovation. Financial backing provided to start-ups is also poised to make the ecosystem flourish and contribute significantly to the overall economic landscape. This forward-looking budget not only fuels the growth of the IT sector but also actively supports a comprehensive skills development ecosystem, ensuring the creation of a workforce that is geared for the future.
“As technology continues its rapid advancement, the 2024 interim budget emerges as a catalyst, steering the IT sector, including the robust geospatial sector toward sustainable excellence and global competitiveness. The visionary initiatives outlined in this budget position India on the trajectory of becoming a technological powerhouse, laying the foundation for a prosperous and globally influential nation,” he adds.
Industry Expectations
The Satcom Industry Association-India (SIA-India) has made ambitious budgetary demands to boost India’s space programme in its pre-budget memorandum submitted to Finance Minister Nirmala Sitharaman, demanding that space budget increased substantially from $1.4 billion to $62 billion to match the US’ spending.
“The extra funds would help involve the private sector, support new technologies and establish India as a leader in the space economy.
The industry body has also sought adequate allocations for cybersecurity of critical space infrastructure,” said SIA in a statement.
Dr Subba Rao Pavuluri, President of SIA-India, said to the Financial Express: “This comprehensive pre-budget submission focuses on pivotal measures aimed at propelling the Commercial Space Sector, with a special emphasis on nurturing and supporting deeptech space startups.
“Emphasizing the imperative of increased funding, we propose a substantial boost in India’s space budget, aligning it with global standards. Financial incentives, interest rate subsidies, and collaborative frameworks between academic institutions and startups are advocated to nurture innovation.”
Indian Space Associations (ISpA)’s key recommendations include expansion on GST exemption to satellites, launch vehicles and ground equipment manufacturing. Plus, similar exemption on procurement of key inputs. Concession on customs duties for notified imports.
Governments should commit to procuring and adopting space tech solutions across domains like agriculture, disaster management etc. The space sector need more clarity on FDI policy for space sector and associated aspects.
ISpA recommends capital subsidy on infrastructure investments with additional subsidy for facilities in remote areas, is proposed to spur manufacturing capabilities, launch infrastructure advancement and downstream space offerings growth in India’s private space industry.
The past year has witnessed remarkable achievements by ISRO, generating national pride like the successful launch of Chandrayaan-3. Initiatives like technology transfer to the private sector, international cooperation agreements (Artemis Accords, iCET, INDUS-X), and increased private investments have shaped India’s space industry.
The Indian Space Policy 2023 marked a transformative phase, welcoming Non-Government Entities (NGEs) into core space activities. IN-SPACe’s 10-year strategy envisions significant growth. However, the private sector’s nascent nature necessitates strategic government support.
