From states to space: India’s spacetech ambition gets local lift-off

India’s space programme, once characterised by a centralised national effort, is undergoing a structural transformation marked by increased collaboration. Led by the Indian Space Research Organisation (ISRO), the country is now developing a decentralised space ecosystem, with individual states emerging as active participants. This shift, guided by the Indian Space Policy 2023, supports ISRO’s long-term objectives, including the establishment of a space station by 2035 and a human mission to the Moon by 2040.

From early launches involving rudimentary methods to the successful soft landing of Chandrayaan-3 on the Moon’s South Pole, ISRO has pursued a trajectory of self-reliance and innovation. With the recent opening of the space sector to private enterprises, the current emphasis is on harnessing collective capabilities. The Indian Space Policy 2023 outlines the framework for this transition, seeking to enable commercial activity in the space sector and strengthen India’s position in the global space economy.

States Take Flight: A New Frontier

The national momentum in the space sector is being mirrored at the state level, with states such as Gujarat, Tamil Nadu, Karnataka, Telangana, and Kerala formulating their SpaceTech policies. These are not simple extensions of the central agenda but region-specific strategies aimed at leveraging local capabilities to create specialised hubs.

The Director General of the Indian Space Association, Lt Gen Anil Kumar Bhatt (Retd.) notes that the implications of these state-level initiatives are significant. “The most important aspect is financial support or incentives, which these policies are beginning to offer,” he states.

In addition to funding, several states are addressing infrastructure requirements. “They are focusing on establishing testing facilities in targeted regions. The geographic expansion of such infrastructure across more states would facilitate sectoral growth.” On the issue of physical resources, Bhatt notes, “For any start-up to scale, access to land is essential. If state policies include provisions for land allocation or support, it creates a mutually beneficial scenario.”

This decentralised approach reflects international models. “We can take the example of how China enabled its provinces to support industrial development, including in the space sector. The competition and engagement among provincial governments contributed significantly to the sector’s progress,” Bhatt explains.

Gujarat is positioning itself as a centre for satellite and payload manufacturing. Tamil Nadu is focusing on the production of launch vehicles, supported by the upcoming spaceport at Kulasekarapattinam. Karnataka, anchored by Bengaluru as its tech capital, is prioritising research and development as well as commercial space operations.

Harmony in the Cosmos: Ensuring Cohesion

The increasing number of state-level space policies has raised concerns regarding coordination and potential duplication. However, experts primarily view these developments as complementary rather than conflicting.

Anil Prakash, the Director General, Satcom Industry Association – India, underscores the need for alignment: “States like Tamil Nadu and Gujarat have launched SpaceTech policies, Karnataka has released a draft, and Kerala is expected to follow. These initiatives must align with the broader objectives of the Indian Space Policy 2023 to ensure consistency.” He adds that state-level frameworks should not contradict the national policy’s strategic direction and must adhere to the phased development roadmap outlined by the Indian National Space Promotion and Authorization Centre (IN-SPACe).

Bhatt reiterates IN-SPACe’s role in maintaining policy coherence. “It is important that central regulations, particularly those under IN-SPACe, remain active to ensure alignment between state policies and the national framework,” he states. He further notes the significance of central oversight in areas such as spectrum management and coordination with international regulatory bodies, including the International Telecommunication Union (ITU).

The aim is not for states to develop end-to-end space programmes, but rather to foster domain-specific specialisation. “What is likely to emerge are clusters specialising in distinct areas—launch vehicles in one state, ISR satellites in another, and communication satellites elsewhere,” Bhatt explains. Prakash supports this, recommending a national cluster-based approach in which states develop expertise in areas such as launch infrastructure, satellite manufacturing, or downstream applications. This, he argues, will reduce redundancy and promote balanced regional growth.

IN-SPACe, as the national coordinating authority for private sector engagement, plays a critical role in ensuring that state-level incentives, such as tax exemptions, production-linked incentives (PLIs), and dedicated testing facilities, contribute to a unified ecosystem. “State policies can further promote space manufacturing by offering incentives such as tax breaks, GST benefits, PLIs, and access to infrastructure, which may influence where companies choose to locate,” Bhatt notes. “IN-SPACe will need to adopt a more proactive role going forward, but the policies themselves are not in conflict.”

To further facilitate coordinated development, Prakash proposes establishing a national coordination committee comprising central and state stakeholders. Such a body would be responsible for aligning efforts across levels of government and promoting knowledge sharing, joint investments, and coherent policy support. It would also encourage public-private partnerships, academic engagement, and collaborative innovation, contributing to the development of a resilient SpaceTech ecosystem.

Fuelling Ambitions: Space Station by 2035, Moon by 2040

This collaborative model is directly supporting ISRO’s long-term missions. The planned Bharatiya Antariksh Station, a 52-tonne modular facility intended to host astronauts for extended durations by 2035, will draw on the specialised manufacturing hubs being established in states such as Gujarat and Tamil Nadu for components and launch vehicle systems. Similarly, the goal of a human landing on the Moon by 2040—building on missions such as Gaganyaan and Chandrayaan-4—requires a skilled workforce and domestically developed technologies.

To meet these requirements, several state-level initiatives are focused on skill development, academic collaboration, and support for start-ups. Partnerships with institutions such as the Indian Institutes of Technology (IITs) and the Indian Institute of Science (IISc), along with targeted entrepreneurship programmes, are cultivating capabilities in areas such as advanced propulsion, life support systems, and space medicine.

These integrated efforts aim to reduce dependence on imports and establish India as a global centre for space research and technology. As Bhatt notes, “From the industry perspective, this is a mutually beneficial development. As more states engage with and incentivise the space sector, broader opportunities will emerge. This growth is essential if we are to meet our target of expanding the sector fivefold, to reach USD 44 billion by 2033.”

India’s space programme is no longer just a national dream. It is a distributed national enterprise involving multiple stakeholders across states. By fostering regional specialisation, incentivising private innovation, and ensuring cohesive coordination, India is not just aiming for the Moon and a space station; it is building the foundations of a thriving, self-reliant, and globally competitive space economy. These developments also represent a shift towards a distributed and collaborative model of growth, one in which contributions from across the nation shape the future of India’s space sector.