India's Department of Space has received a budget allocation of ₹13,705.63 crore for the 2026-27 fiscal year, representing a modest hike of approximately 2 per cent over the previous Budget Estimate of ₹13,416.20 crore for 2025-26.

This increment amounts to about ₹289 crore, underscoring the government's ongoing commitment to the space sector amid preparations for several high-stakes missions.

However, the modest rise has sparked debates on its adequacy, given the escalating costs and complexities of India's ambitious space agenda.

A notable feature of the allocation is the emphasis on capital expenditure, which has increased from ₹6,103.63 crore in 2025-26 to ₹6,375.92 crore in 2026-27—a jump of over ₹270 crore.

This shift prioritises infrastructure development and long-term capabilities, such as launch vehicles, satellite programs, and human spaceflight initiatives at ISRO centres.

In contrast, revenue expenditure—covering salaries, operations, and routine costs—remains largely unchanged at ₹7,329.71 crore, indicating restrained expansion in day-to-day operations.

Significant portions of the budget continue to flow towards space technology, including advancements in launch vehicles and infrastructure vital for ISRO's core activities. Allocations for space applications and sciences have also seen uplifts, supporting earth observation, communication services, and scientific endeavours.

Yet, the funding comes under scrutiny as ISRO gears up for transformative projects like the Gaganyaan human spaceflight programme, which has completed over 8,000 ground tests and nears its maiden launch.

Upcoming efforts also encompass advanced lunar exploration tied to the Artemis accords, potential development of an Indian space station, and bolder interplanetary missions.

These initiatives demand not just steady funding but escalating capital outlays as they transition from research to operational phases.

When viewed against the Revised Estimate for 2025-26 of ₹12,448.60 crore—adjusted mid-year—the new allocation appears more robust, though much of it restores deferred expenditures rather than signalling fresh growth.

Support for commercialisation is evident in the increased budgetary aid to NewSpace India Limited (NSIL), rising to ₹1,403 crore, aimed at monetising ISRO technologies and fostering private involvement.

Private stakeholders, however, contend that amplified public investment is essential to develop shared infrastructure and lower barriers for new entrants in the sector.

Lt. Gen. AK Bhatt (Retd.), Director General of the Indian Space Association (ISpA), welcomed the budget, noting it signals stronger private participation in ISRO-led programs spanning launch vehicles, satellites, and missions.

The overall 2026-27 space budget emphasises continuity over bold expansion, maintaining momentum for India's space ambitions.

Additionally, the budget includes provisions for astronomy and astrophysics, with plans to establish and upgrade four key facilities: the National Large Solar Telescope (NLST), National Large Optical Infrared Telescope (NLOT), Himalayan Chandra Telescope, and COSMOS 2 Planetarium.

These enhancements aim to bolster research in these fields, aligning with broader scientific goals.

While the allocation keeps programs on course, experts caution that substantially higher funding will be needed in future years to align India's global aspirations with adequate resources.

This is particularly critical as space assumes greater roles in national security, scientific progress, and economic expansion.

Based On India Today Report