Budget 2026: Higher allocation, targeted adoption of Geospatial Mission among key expectations from space sector

The 2026 budget is near, and the Finance Minister will present her 9th budget on February 1. At the sectoral level, the space sector continued to receive increased focus in recent years via announcements like PM Gati Shakti Mission for Geospatial systems, support for big space missions and others. Likewise, the space sector continues to remain optimistic about an increase in allocation in 2026 at the macro level. In addition, the sector also expects specific announcements to bolster the competitiveness of the Indian space sector.

Budget 2025 allocation highlights

The Finance Minister bolstered the space sector with multiple announcements in the 2025 budget, allocating a total of over ₹13,417 crore, which is slightly higher than the earlier allocation of ₹13,042 crore. The budget outlay included capital expenditure of ₹6,103 crore for building new infrastructure, while ₹7,312 crore was earmarked for revenue expenditure. As ISRO prepared for some big-ticket launches, the higher allocation bolstered the hopes for space exploration and space technology. In addition to the budgetary allocations, the government also reduced customs duty on certain space consumables, essential goods used in launching space missions.

The other key initiatives included an announcement of a flagship programme on geospatial mission under the PM Gati Shakti framework. A special budget support of ₹1200 crore to ensure it meets its upcoming milestones. Additionally, a ₹1000 crore venture capital fund to support space startups and the private space economy was also announced.

Expectations from Budget 2026

After a host of announcements, the space sector is ready for a higher share in the kitty in the 2026 budget. Here are space sector expectations from the upcoming budget.

According to Deloitte, the space sector expects a reinforced focus on the sector with lower taxes, increased allocation and strong adoption of Geospatial Mission. The budget expectation report highlights the space sector expectation in three areas. First, exemptions in the GST and customs duty for on-ground systems, components of launch vehicles, and satellite-based service providers. At present, the levy of customs duty and GST on critical components increases the overall burden for space missions, space-tech companies and early-stage space startups. The exemptions across the value chain will ensure a smooth and fair tax treatment for the entire sector and could further increase the competitiveness of the Indian space sector.

Secondly, the ₹1000 crore venture capital fund is expected to be scaled further by way of simplification in early-stage seed funding in the range of ₹10 crore to ₹0 crore. The Deloitte report highlights the rationale behind this measure. India’s private space ecosystem is entering a critical growth phase where early-stage capital must bridge the gap between prototype development and commercial scale-up. Despite rising investor interest since liberalisation in 2020, deeptech ventures remain constrained by high hardware burn rates, long gestation timelines and limited private risk appetite.

Lastly, a stronger adoption of measures for establishing the National Geospatial Mission, which would aim, 100% onboarding of centrally sponsored infrastructure projects onto PM Gati Shakti within 24 months, including mandatory satellite imagery layers. At least 500 districts should publish standardised Earth observation (EO)-based monitoring dashboards for land, water and transport assets. By enforcing target-based measures, the government could ensure better results in the field of land mapping, disaster management and others.

Stocks in focus

Shares of CE Infosystems (MapmyIndia) will be in focus as it is engaged in digital maps, data collection, followed by Genesys International, which is engaged in 3D mapping and digital twin technology, Scanpoint Geomatics, Ideaforge Technologies, Cyient Ltd, and Data Patterns. Infrastructure companies like L&T, HFCL, and Tejas Networks are also indirect beneficiaries from the announcements in the space sector, as they are involved in ground infrastructure projects.