As the Union Budget for 2026-27 approaches, India's burgeoning space ecosystem stands at a pivotal juncture. Stakeholders from industry, academia, and economics are pressing for substantial fiscal backing, designation as critical infrastructure, and enhanced private sector involvement to propel the nation's space ambitions onto the global stage.

India has solidified its reputation as a dependable and economical spacefaring power, yet experts contend that sustained growth hinges on more than mere policy declarations. Deeper financial commitments, regulatory reforms, and structural adjustments are essential, especially to attract large-scale private investment.

Central to these demands is the call to classify the space sector as critical infrastructure, alongside a sharp rise in budgetary provisions. Bodies like the Indian Space Association (ISpA) view the upcoming budget as a transformative chance to evolve India's space efforts into a commercially viable, world-class enterprise.

Former ISRO scientist Surendra Pal emphasises that isolating the space sector from broader contexts no longer aligns with contemporary geopolitical and technological dynamics. He asserts that it is as vital as defence and defence manufacturing in the current global landscape.

Pal advocates redefining activities above 500 metres under a comprehensive 'aerospace' umbrella. This would integrate satellites, launch vehicles, missiles, drones, high-altitude platform technologies (HAPTs), and essential ground infrastructure like telemetry and telecommand stations, control centres, and radars.

Such a framework should also embrace 5G/6G communication networks and innovation-driven start-ups. Amid escalating global security challenges, Pal notes that modern warfare and defence readiness increasingly rely on aerospace supremacy, bolstered by AI, machine learning, and software applications.

Future security paradigms, he warns, will depend on robust satellite constellations spanning low Earth orbit (LEO), medium Earth orbit (MEO), and multi-beam geostationary orbit (GEO). These networks are crucial for navigation, surveillance, communication, and secure tactical command of fighters, drones, and ground forces—shielded from adversarial detection.

Achieving this requires 'launch on demand' capabilities, rapid satellite replenishment, resilient ground infrastructure, and relentless research and development. Pal cautions against siloed approaches, insisting that the space sector must be viewed holistically within national security priorities.

Given India's surging capacity needs, Pal deems marginal budget hikes inadequate. He urges tripling current allocations for space-related demands alone, coupled with stringent quality controls in fabrication and manufacturing.

This would involve embedding quality assurance personnel directly with industries and start-ups, reporting straight to the ISRO Chairman, to enforce an 'iron fist' on standards and mitigate risks in a high-stakes domain.

Economists reinforce the urgency of targeted funding, particularly for start-ups. Sharad Kohli highlights India's elevated global profile, positioning it among the top four or five nations in satellite launches, including missions for international clients.

He cites recent triumphs, such as the launch of a record 6,500-kilogram payload via the LVM3 vehicle in the Bluebird Block-2 mission. While acknowledging occasional setbacks, Kohli frames them as inevitable learning steps rather than derailments.

India's horizons are expanding ambitiously, from solar probes to Mars and Venus explorations, drawing worldwide focus to its vibrant space start-up scene. Yet Kohli stresses that budgets must match these aspirations with dedicated allocations for start-ups, providing both capital and governmental guidance.

These fledgling enterprises hold immense promise for public-private partnerships, accelerating innovation and commercialisation in the sector. Seema Sharma, an economist and IIT professor, is forthright on the infrastructure imperative.

She insists the space sector merits immediate critical infrastructure status to unlock long-term financing streams, enabling sustained investment and growth. Without this, scaling operations amid rising demands remains challenging.

ISpA posits that Budget 2026-27 presents a fleeting yet potent opportunity to recast the government not as the exclusive operator, but as a strategic partner and anchor customer. This shift could foster a secure, competitive commercial ecosystem for space endeavours.

Experts warn that absent bold fiscal and systemic measures, India risks squandering a multifaceted opportunity. The sector underpins economic expansion, national security, technological self-reliance, and elevated global influence.

The forthcoming budget will serve as a litmus test of India's resolve to harness space as a gateway to the world, blending ambition with actionable support.

Agencies