Indian Space Association Presents Budgetary Proposals To Boost Space Industry

Indian Space Association

The Indian Space Association (ISPA) has recently put forth a comprehensive set of ideas to the government with the aim of implementing favorable budgetary measures in the upcoming Union Budget 2024–25. These proposals are designed to support and stimulate the growth of the space industry in India.

One of the key recommendations made by ISPA is the exemption of satellite companies from Goods and Services Tax (GST). This exemption would cover not only the manufacturing of satellites but also launch vehicles and ground equipment. ISPA emphasizes the importance of extending this exemption to critical inputs in the manufacturing process, which would further encourage the growth of the space industry.

In addition to the GST exemption, ISPA has proposed a reduction in the tax rate on external commercial borrowings to 5%. This move aims to make financing more accessible for space projects, attract investment, and foster innovation in the sector. By lowering the tax burden on external commercial borrowings, ISPA believes that more companies will be able to secure the necessary funds for their space-related endeavors.

Furthermore, ISPA has suggested the implementation of capital subsidies for infrastructure expenditures. This measure is intended to incentivize private sector participation in the development of space-related infrastructure. By providing subsidies for infrastructure costs, ISPA hopes to encourage more companies to invest in the necessary facilities and contribute to the growth of the space industry.

Lt. Gen. AK Bhatt, the Director General of ISPA, has emphasized the importance of a comprehensive regulatory framework in propelling the space industry forward. A well-defined and supportive regulatory environment is crucial for fostering innovation, attracting investment, and ensuring the long-term sustainability of the sector. ISPA’s proposals aim to address these regulatory aspects and provide a solid foundation for the growth of the space industry in India.

ISPA’s plans align with the 10-year goal set by IN-SPACe, the Indian National Space Promotion and Authorization Center. With the implementation of these budgetary measures, ISPA expects significant growth in the space sector. The proposed initiatives not only aim to drive innovation but also encourage the adoption of space technology applications and cost-cutting initiatives. These efforts are crucial to achieving the ambitious target of $44 billion set for the Indian space industry by 2033.

ISPA asks the government to explore its ideas for promoting the expansion of commercial space firms. By utilizing the government’s backing and imaginative policies, these businesses have the ability to provide major socioeconomic advantages to the country. He emphasizes the importance of tackling existing fiscal and tax difficulties in order to stimulate innovation and ensure the sector’s financial well-being.

The successful implementation of ISPA’s proposals has the potential to establish India as a major player in the global space sector. This, in turn, would promote economic growth, technical innovation, and numerous job opportunities. The space industry has a wide range of applications, including communication, navigation, weather forecasting, and remote sensing, which have the potential to benefit various sectors of the economy.

In conclusion, the Indian Space Association’s proposals for favorable budgetary measures in the upcoming Union Budget 2024–25 aim to support and stimulate the growth of the space industry in India. These measures include the exemption of satellite companies from GST, a reduction in the tax rate on external commercial borrowings, and the implementation of capital subsidies for infrastructure expenditures. By implementing these measures, India has the potential to become a major player in the global space sector, promoting economic growth, technical innovation, and job creation.