Gujarat, Tamil Nadu to establish space manufacturing clusters, Karnataka in pipeline: IN-SPACe chairman Pawan Goenka

IN-SPACe chairman Pawan Kumar Goenka

Gujarat and Tamil Nadu have signed agreements to develop dedicated manufacturing clusters for space subsystems, with Karnataka expected to follow soon, said Indian National Space Promotion and Authorisation Center (IN-SPACe) chairman Pawan Kumar Goenka.

Discussions are also underway with two to three other states to expand the programme, Goenka said in an interview with Moneycontrol on March 12.

“The idea is that the states will set up a manufacturing park specifically for space subsystems. The state will provide common infrastructure so that companies do not have to invest a lot of money in common infrastructure, and IN-SPACe will provide technical help,” Goenka stated.

This follows the Centre's announcement in August 2024 that it was working with states to incentivise manufacturing of space subsystems with the help of fiscal and non-fiscal incentives.

The initiative is primarily state-driven, with each participating state taking the lead in establishing the clusters, Goenka said.

While IN-SPACe will play an advisory role, offering technical expertise and facilitation, the funding and execution will largely be handled at the state level. “It is a state initiative. We are only helping,” Goenka clarified.

The proposed clusters will house companies involved in the manufacturing of space subsystems, providing them with shared infrastructure and technical assistance to lower the cost of entry and promote innovation.

The aim is to create a robust industrial ecosystem that can support the growing demands of India’s space program and private sector advancements.

These developments come at a time when the Indian government has liberalised the space sector with the host of policy interventions such as introduction of a dedicated national-level space policy, revised FDI forms, and recently, reduction in customs duties for a few space components.

A Rs 1,000 crore VC fund was announced by finance minister Nirmala Sitharaman during Budget would help new and upcoming enterprises in the space sector. IN-SPACe is close to appointing a fund manager for the same.