ISRO’s plans for new rockets, a dedicated space station, and human spaceflights received a boost as Finance Minister Nirmala Sitharaman allocated Rs 13,705.60 crore to the Department of Space in the Union Budget 2026-27.

This represents a slight increase over the budget estimate of Rs 13,416 crore for 2025-26. The department had received Rs 12,448.60 crore in revised estimates for the current fiscal.

Of the 2026-27 allocation, Rs 10,397.06 crore is earmarked under ‘space technology,’ supporting ISRO centres including Vikram Sarabhai Space Centre, Liquid Propulsion Systems Centre, ISRO Propulsion Complex, and UR Rao Satellite Centre. The funds cover launch vehicle and satellite projects, including developmental, operational, and IN-SPACe schemes. Revenue expenditure accounts for Rs 7,329.70 crore, while Rs 6,375.90 crore is capital spending, marking a rise of Rs 1,066 crore from last year’s revised plan.

ISRO plans uncrewed Gaganyaan flights this year and is developing the Next Generation Launch Vehicle to carry heavier payloads into orbit.

Lt Gen A K Bhatt (retd), Director General of the Indian Space Association, noted that the increased allocation signals stronger private sector participation in ISRO-led programmes. Subba Rao Pavuluri, President of Satcom Industry Association-India, said targeted incentives, GST rationalisation, hybrid production-linked incentives, and formal recognition of space as critical infrastructure are still awaited.

Pawan Kumar Goenka, Chairman of IN-SPACe, said the Union Budget 2026 strengthens economic foundations through manufacturing, MSME support, and infrastructure development, emphasizing policy stability for long-term growth.