Tamil Nadu and Gujarat Space Policies for 2025

April 18, 2025

The Tamil Nadu Cabinet recently approved the Tamil Nadu Space Industrial Policy 2025. This policy aims to position the state as a leader in space innovation and high-value manufacturing. It follows the draft policy released in July 2024, which has undergone revisions. Gujarat has also introduced its SpaceTech Policy for 2025-2030, becoming the first state of India with a dedicated space sector policy. Both policies focus on attracting investments and encouraging job creation in the space sector.

Tamil Nadu Space Industrial Policy 2025

The Tamil Nadu Space Industrial Policy is structured around three main pillars.

It aims to attract ₹10,000 crore in investments.
It targets the creation of at least 10,000 high-value jobs for skilled youth.
It focuses on building a workforce ready for future challenges in space technology.

The policy encompasses both manufacturing and services, promoting downstream innovation. Special incentives will be provided for start-ups and larger firms establishing themselves in designated Space Bays.

Incentives and Support Structures

The Tamil Nadu policy includes a capital subsidy of up to 20% for eligible businesses. It also introduces a ‘Space Tech Fund’ with an allocation of ₹10 crore to support start-ups in the space technology field. Additional facilities for satellite testing and skill development will be established in Chennai. This comprehensive approach aims to strengthen Tamil Nadu’s position as a hub for space tech.

Gujarat SpaceTech Policy 2025-2030

Gujarat’s newly launched SpaceTech Policy focuses on supporting the entire spectrum of space activities. This includes manufacturing satellite components, communication systems, and application design. The policy aims to establish a Centre for Excellence in Space Technologies to enhance skill development and research. Collaboration with ISRO and IN-SPACe will facilitate the establishment of a space manufacturing park, providing essential infrastructure for enterprises.

Fiscal and Non-Fiscal Support

Gujarat’s policy offers both fiscal and non-fiscal support for space sector activities. It aims to reduce launch costs and patent filing expenses for manufacturers. Start-ups will receive additional assistance through existing state policies. This initiative is expected to empower entrepreneurs and attract investment in the state’s space sector.

Broader Implications for the Space Sector

Both states are responding to the central government’s initiatives to open the space sector to private participation. The Indian Space Policy 2023 encourages foreign direct investment and aims to engage the private sector across all domains of space activities. This creates a conducive environment for growth and innovation in the Indian space sector.

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