Union Budget 2026: Space department allocation up by around ₹290cr
What's the story
The Indian government's allocation for the Department of Space in the Union Budget for 2026-27 has been increased by ₹289 crore, or just over 2%. The new budget stands at ₹13,705.63 crore compared to last year's estimate of ₹13,416.20 crore. While this increase shows continued support for India's space ambitions, it raises questions about its adequacy considering ISRO's upcoming high-cost missions.
Spending focus
Shift toward capital expenditure
The latest budget allocation shows a clear shift toward capital expenditure. The capital outlay has increased from ₹6,103.63 crore in 2025-26 to ₹6,375.92 crore in 2026-27, an increase of over ₹270 crore. On the other hand, revenue expenditure covering salaries and routine expenses has remained largely unchanged at ₹7,329.71 crore. This indicates a focus on infrastructure creation and long-term capability building over short-term operational expansion.
Funding distribution
Major allocations toward space technology
A major chunk of the budget is still allocated to space technology, including launch vehicle development, satellite programs, infrastructure at ISRO centers, and activities related to the Gaganyaan human spaceflight mission. Allocations for space applications and sciences have also been increased.
Mission plans
Adequacy of budget under scanner
As India gears up for its next space journey, the scrutiny of budget adequacy has intensified. In the coming years, ISRO is likely to push ahead with the Gaganyaan program, advanced lunar exploration under the Artemis-linked international frameworks, as well as more ambitious interplanetary missions. Each of these projects will require not just sustained funding but also much higher annual capital allocations as they move from development to execution.
Market expansion
Increased focus on NewSpace India Limited
The budgetary support for NewSpace India Limited (NSIL) has been increased to ₹1,403 crore in 2026-27. This highlights the government's push to monetize ISRO's technologies and promote private-sector participation. However, industry players believe that stronger public investment in shared infrastructure will be key to reducing entry barriers and accelerating growth of India's private space ecosystem.