Space industry welcomes move to reduce customs duty on satellite launches and launch vehicles

The space industry has welcomed Centre's decision to reduce custom duties on ground installations and satellite launches, along with goods used in the manufacturing of launch vehicles (rockets) to zero in the Union Budget 2025-26.

Awais Ahmed, CEO and co-founder of Pixxel Space said, "Lower customs duty will further reduce input costs, deepen value addition, and enhance manufacturing and exports. This is arguably one of the most impactful developments for the private space industry since the space policy, providing a massive boost for Indian companies to compete globally."

Annexure D of the Union Budget document said, "..ground installation for satellites including its spares and consumables" and "goods used in the building of launch vehicles and launching of satellites" have been reduced to zero. Earlier, for ground installation, custom duties were levied "as applicable", and for the latter, it was at 5 per cent.

Goldie Dhama, Partner, Deloitte India said, "Reduction of custom duties to Nil for both installation of satellites and building of launch vehicles and launching satellites should allow both global and domestic companies to make further investment for Manufacturing in India and growth of the space sector."