Union Budget 2026-27 Boosts Space Department Allocation to Rs 13,705.6 Crore
The Department of Space (DoS) has been allocated Rs 13,705.6 crore for the fiscal year 2026-27, according to the Union Budget presented today. This marks a steady increase from the revised estimate of Rs 12,448.6 crore in the current financial year, reflecting the government's continued commitment to advancing India's space capabilities.
Capital Expenditure Drives Growth in Space Budget
The budget increase is largely driven by higher capital expenditure, which signals a significant push toward new launch vehicles, satellite infrastructure, and upcoming exploration missions. Of the total outlay, Rs 7,329.7 crore is allocated for revenue expenditure, while Rs 6,375.9 crore is earmarked for capital spending. This represents a jump of nearly Rs 1,066 crore over last year's revised capital plan.
Officials view this allocation as an indication that India's space programme is transitioning from preparatory work to hardware realisation for critical projects. These include initiatives tied to the Gaganyaan human spaceflight roadmap, next-generation launch vehicles, and high-throughput satellites.
Breakdown of Space Department Allocation
The budget allocation is distributed across several key segments within the Department of Space:
- Space Technology: Receives the largest share at Rs 10,397.1 crore, up from Rs 9,602 crore in the revised estimate. This segment covers activities of major ISRO centres such as VSSC, LPSC, URSC, SDSC, and the Human Spaceflight Centre. Funds will support launch vehicle and satellite projects, ground infrastructure, and schemes routed through IN-SPACe to encourage private sector participation.
- Space Applications: Allocated Rs 1,725.1 crore, a moderate rise aimed at earth observation, disaster management, and remote sensing services undertaken by SAC, NRSC, and IIRS.
- Space Sciences: Sees a striking increase to Rs 569.8 crore, nearly three times the revised allocation of Rs 184.6 crore. This head supports planetary missions, payload development, and astronomy projects, suggesting fresh approvals beyond follow-ons to Aditya-L1 and Xposat missions.
- INSAT Satellite Systems: Experiences a dip to Rs 130.9 crore from Rs 205.9 crore last year, reflecting the completion of earlier satellite batches and a shift toward private leasing models.
Institutional and Commercial Support
On the institutional side, establishment expenses for the Secretariat, ISRO headquarters, and IN-SPACe together amount to Rs 393.8 crore. Autonomous bodies including IIST, PRL, NARL, and NE-SAC receive Rs 480.6 crore.
The commercial arm, NewSpace India Limited (NSIL), has been provided a token budgetary support of Rs 0.01 crore. However, its internal and extra budgetary resources are projected to rise to Rs 1,403 crore, underlining the expectation that NSIL will drive production and market revenues in the space sector.
Strategic Priorities and Future Outlook
The structure of spending points to three key priorities for India's space programme:
- Readiness for Human Spaceflight: Accelerating the Gaganyaan mission and related infrastructure.
- Expansion of Earth Observation Services: Enhancing capabilities for climate monitoring, security, and disaster management.
- Deeper Engagement with Industry: Fostering collaboration through IN-SPACe and NSIL to boost private sector participation.
With capital allocations now close to matching revenue outgo, the programme appears set for a build phase rather than routine operations. This budget reflects a strategic shift toward hardware-intensive projects and commercialisation efforts, positioning India for significant advancements in space exploration and technology in the coming years.
