The Department of Space has introduced two new financial incentive programs through IN-SPACe, designed to accelerate private sector participation in India’s space industry.

These initiatives, known as the Launch Services Price-Support Scheme (LSPS) and the Price Support Scheme, provide subsidies ranging from 30% to 100% on launch costs, technology transfers, Earth observation data, and the use of ISRO facilities.

The schemes are intended to reduce barriers for start-ups and non-government entities, enabling them to access advanced infrastructure and services at significantly lower costs.

The Launch Services Price-Support Scheme specifically targets small satellite operators. It extends launch incentives for satellites weighing up to 100 kilograms on PSLV, GSLV, and LVM-3 missions. 

Under this scheme, private firms will receive a 30% subsidy on contractual launch costs, or up to $3,000 per kilogram, whichever is lower. This measure is expected to make India’s launch services more competitive globally and encourage domestic firms to develop and deploy small satellite constellations for communication, Earth observation, and scientific applications.

The Price Support Scheme complements LSPS by focusing on broader infrastructure and technology access. Running for three years until February 2029, it aims to reduce the cost of utilising local space infrastructure.

It offers up to 50% support for using Department of Space and IN-SPACe technical facilities, including testing centres, integration facilities, and specialised expertise. This will allow private firms to leverage state-of-the-art infrastructure without incurring prohibitive expenses.

Another key component of the scheme is a 30% subsidy on Technology Transfer Fees for licenses obtained from ISRO. This provision is designed to encourage private industry to absorb and commercialise ISRO’s advanced technologies, ranging from propulsion systems to satellite subsystems. 

By lowering the cost of licensing, the scheme ensures that more firms can adopt proven technologies and bring them to market efficiently.

The scheme also provides a 50% subsidy on standard Earth observation data and products. This will support downstream applications such as agriculture monitoring, urban planning, disaster management, and climate studies.

By making high-quality satellite data more affordable, the government aims to stimulate innovation in sectors that rely on geospatial intelligence, while also expanding India’s footprint in the global data services market.

Together, these programs represent a significant step in India’s strategy to expand its space economy. They are expected to attract new entrants, strengthen indigenous capabilities, and enhance competitiveness in the international market.

Industry experts believe that these incentives will accelerate the growth of private space firms, foster innovation, and ensure that India achieves its target of capturing a larger share of the global space economy in the coming decade.

Agencies