India Lifts Space Budget as ISRO Ramps Up Missions

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India stepped up funding for its space program in the Union Budget for 2026–27, lifting the allocation for the Department of Space, which oversees the Indian Space Research Organisation (ISRO), to ₹13,705.63 crore as the agency prepares for a busy launch calendar and pushes deeper engagement with private industry.

The allocation, up from ₹12,448.60 crore in the revised estimates for FY2025–26, reflects higher capital spending on launch vehicles, satellites and scientific missions, according to budget documents.

Capital expenditure for the Department of Space rose to ₹6,375.92 crore in FY27 from ₹5,309.87 crore in the revised estimate for FY26, while revenue expenditure increased to ₹7,329.71 crore, taking total spending to ₹13,705.63 crore.

Spending on space technology, which covers launch vehicles and core infrastructure across ISRO centers, climbed to ₹5,489.75 crore from ₹4,754.49 crore. Allocations for space sciences rose sharply to ₹428.31 crore from ₹98.95 crore, pointing to higher outlays for planetary science, climate and atmospheric research and sponsored academic programs.

Space applications spending increased to ₹360.92 crore from ₹314.44 crore, while funding for INSAT and GSAT satellite systems declined to ₹67.76 crore from ₹121.44 crore.

The budget support comes as the Department of Space has scheduled seven major missions through FY27, spanning Polar Satellite Launch Vehicle missions for earth observation and small satellites, Geosynchronous Satellite Launch Vehicle missions for communication payloads, and heavier launches using the LVM3 platform and next-generation launch vehicle programs.

Industry groups said the higher allocation sends a signal of policy continuity at a time when India is opening more of its space ecosystem to private participation.

Lt. Gen. A.K. Bhatt (retd.), director general of the Indian Space Association (ISpA), said, “We are hopeful that today’s Budget, with its emphasis on easing processes and creating a more investment friendly environment for science and technology, will encourage greater private sector participation.”

“The increase in ISRO’s allocation to ₹13,705.63 crore in FY2026–27 is an important signal that will help support deeper private sector participation in ISRO-led programs across launch vehicles, satellites and scientific missions,” Bhatt said.

He added that announcements linked to expanding telescope infrastructure and learning facilities would strengthen India’s scientific base. “Alongside this, the announcement to expand telescope infrastructure and learning facilities is a meaningful step towards strengthening India’s scientific base in astrophysics and astronomy,” Bhatt said.

“These measures can improve observational capabilities, enable long-term research and strengthen collaboration between ISRO, academia and industry, gradually enhancing India’s contribution to global space science and the broader space ecosystem,” he added.

The budget also maintains funding for institutions such as the Indian Institute of Space Science and Technology, the Physical Research Laboratory and the National Atmospheric Research Laboratory, while continuing capital support for NewSpace India Ltd, ISRO’s commercial arm responsible for launch vehicle production and technology transfer.

Adding that budget builds on the groundwork laid over the last few years strengthening the overall innovation ecosystem, through initiatives like the IndiaAI Mission and the ₹10,000 crore SME Growth Fund for startups and MSMEs, Krishanu Acharya, Co-Founder and CEO, Suhora Technologies said “The 15% increase in the defense budget to ₹7.85 lakh crore is a particularly strong signal for the space sector, as defense remains one of the largest and most strategic users of space-based capabilities.” He added that he is hopeful that the increased allocation in defense will accelerate greater adoption of satellite data analytics for ISR, terrain surveillance and maritime domain awareness to not only enhance operational readiness but also create sustained demand for indigenous space technologies. Acharya said that this, in turn, will help the domestic space ecosystem mature faster, from upstream satellite capabilities to downstream analytics and applications. “