India Boosts Space Budget: ISRO Secures ₹13,416.2 Crore ($1.5 billion) for 2025-26

In the Union Budget for the financial year 2025-26, the Indian Space Research Organisation (ISRO) and the broader space sector have been allocated ₹13,416.2 crore (approximately $1.5 billion). This represents a 2.86% increase from the previous year's allocation of ₹13,042.75 crore.

Budget Allocation Breakdown

The Department of Space, which oversees ISRO's operations, received ₹13,042.75 crore in the 2024-25 budget, marking an 18% increase from the prior year. This substantial hike was primarily directed towards the development of space technologies, with allocations for space applications seeing a marginal rise, while funding for space sciences decreased slightly. Notably, the budget for INSAT satellite systems was nearly halved compared to the previous year.

Strategic Initiatives and Future Plans

ISRO has outlined an ambitious roadmap, including the development of a next-generation launch vehicle, more advanced lunar missions, and the establishment of an Indian space station. The organization is also progressing with its human spaceflight program, Gaganyaan, aiming to send Indian astronauts into space.

In October 2024, the government approved a ₹1,000 crore (approximately $120 million) venture capital fund to support space startups, with the goal of expanding India's space economy fivefold in the next decade. This initiative reflects the government's commitment to fostering innovation and encouraging private sector participation in the space industry.

Industry Perspectives

The increased budget allocation has been met with cautious optimism within the industry. While some experts believe that the ₹1,000 crore fund is a modest beginning, they emphasize the need for more substantial investments to match global standards. Others highlight the importance of the government acting as an anchor customer to validate high-risk products, thereby attracting further private investment.

Global Context

Despite India's notable achievements in space exploration, such as the Chandrayaan-3 lunar landing and the Aditya-L1 solar probe launch, funding for India's space sector saw a 55% decline in 2024, dropping to $59.1 million from $130.2 million in 2023. This decrease aligns with a global 20% reduction in space sector investment. However, industry participants anticipate a resurgence in funding in 2025, driven by upcoming milestones and the government's supportive initiatives.

The 2.86% increase in the budget allocation for ISRO and the space sector underscores the Indian government's ongoing commitment to advancing space technology and exploration. With strategic investments and a focus on fostering innovation, India is poised to strengthen its position in the global space arena.