Union Budget 2026: push for technology, planetary science in space programme

The total budget allocation for the Department of Space has seen a marginal increase compared to 2026-2027 but a double-digit jump compared to actual revised spending.

Importantly, while the allocation of ₹13,705.63 crore represents a modest growth of 2.16% from 2025-2026, there is a more significant increase of 10.1% over the revised spending figure of ₹12,448.60 crore, suggesting that while the government is increasing funding, the Department of Space has once again under-utilised its budget in the current year by around ₹970 crore.

Also read | Union Budget 2026 LIVE

The split between operational costs and investment in infrastructure and missions has stayed relatively balanced, though capital expenditure is seeing higher growth. The capital investment of ₹6,375.92 crore, around 46% of the allocation, includes the cost of building new satellites, launch vehicles, and infrastructure.

Capital expenditure is projected to grow by 20% compared to the revised estimates of 2025-26, of ₹5,309.87 crore, signalling a renewed push for hardware and mission development in the coming year.

The bulk of the funding is directed towards specific technical projects rather than general administration. Space technology has received the largest share at ₹10,397.06 crore. This fund will support various Indian Space Research Organisation (ISRO) centres and critical projects like launch vehicles and satellites.

Also read | Union Budget 2026-27 documents

Space applications have received ₹1,725.06 crore and the budget for IN-SPACe, the private sector regulator and promoter, has been set at ₹194.57 crore.

Notably, space sciences — which covers planetary exploration and climate and atmospheric programmes — has received ₹569.76 crore, significantly higher than the revised estimate of ₹184.62 crore for 2025-26.

NewSpace India, Ltd. (NSIL), which is the commercial arm of ISRO, has received negligible direct budget support — ₹1 lakh — but its “Internal and Extra Budgetary Resources” (IEBR) are projected to grow substantially to ₹1,403.00 crore, up from the ₹1,030.00 crore in the previous year. This indicates that the government expects NSIL to continue to generate more of its own revenue through commercial launches and technology transfers.

Also read | Union Budget 2026 industry reactions LIVE

The National Geospatial Mission announced in the 2025-2026 Budget is administratively situated under the Department of Science and Technology (DST) rather than that of Space, with the latter acting as the primary data generator. Its contribution is facilitated through the ₹1,725.06-crore space applications budget, which includes funds for satellite-based remote sensing.

For the 2026-2027 fiscal, the Mission has received ₹100 crore, marking a return to its full budgetary target after a revised mid-year reduction to ₹35 crore in the previous cycle.

Institutions like the Physical Research Laboratory in Ahmedabad and the Indian Institute of Space Science and Technology in Thiruvananthapuram have received stable funding to maintain their talent pipelines and fundamental research.

Overall, the budget for the space programme reflects steady growth rather than an aggressive push. The most notable takeaway is the rebound in funding for space sciences and the 20% increase in relative to the revised 2025-2026 figures, suggesting that several major missions — likely Gaganyaan and upcoming planetary missions like Chandrayaan-4, LUPEX, and the Venus orbiter — are entering capital-intensive phases.