Union Budget 2026-27: Space budget recovers but misses crucial private sector reforms

The Union Budget for 2026-27 highlights a recovery in the space sector, showcasing the government's commitment to advancing the country's space ambitions. However, despite legal provisions allowing private sector participation, financial mechanisms to support these enterprises remain lacking. Experts have pointed out that while the budget reflects an intent to integrate private players into the space industry, without necessary fiscal reforms and investment incentives, it risks stunting innovation and growth in this critical sector. The Indian space program has historically been dominated by government entities, and the current budgetary decisions indicate an attempt to shift this paradigm. Nonetheless, stakeholders are urging the government to address the financial barriers that hinder private sector involvement, emphasizing that robust support structures are essential for fostering a competitive and dynamic space ecosystem. As India aims to bolster its position in the global space arena, the need for strategic funding and reforms in the private sector becomes increasingly urgent to ensure sustainable development and advancement in space technology.