Karnataka plans ascent into India's space orbit with $22 billion target

State eyes $3 bn in investment and a 50% national share as it ramps up upstream, downstream activities

Karnataka on Tuesday announced its space technology (spacetech) policy for 2025–30, setting a target to capture 50 per cent of India’s space market and 5 per cent of the global share by 2034.

 

Unveiled at the Bengaluru Tech Summit 2025, the policy focuses on building capacity through training for students and professionals — with a special emphasis on women — attracting investments, creating world-class infrastructure, and setting up a centre of excellence (CoE) for spacetech to drive research and innovation.

 

“This policy is not merely a road map; it is a vision to position Karnataka as the epicentre of India’s space ambitions and a global hub for space innovation, manufacturing, and research,” Chief Minister Siddaramaiah said at the event.

 

The government, which is seeking about $3 billion in investment for the state’s space ecosystem, will offer incentives to domestic and international companies, micro, small and medium enterprises (MSMEs), startups, and private equity and venture capital firms to invest in Karnataka and Karnataka-based companies.

 

The mission will be carried out through 35 initiatives across five pillars: skill development, investment incentives, infrastructure development, innovation and facilitation, and adoption and awareness.

 

India’s space economy could reach $44 billion by 2033, up from $8.4 billion in 2022, according to a Ficci–EY report released earlier this year. Karnataka wants to secure $22 billion of that opportunity.

 

The state joins several others with dedicated spacetech policies. These include Telangana (Telangana Spacetech Framework 2022), Gujarat (Spacetech Policy 2025–30), and Tamil Nadu (Space Industrial Policy 2025).

 

Key features of Karnataka’s policy include promoting scientific temper and curiosity for space technologies among youth through awareness and skilling programmes; establishing a CoE and innovation clusters to boost research and development and technology transfer; offering fiscal and non-fiscal incentives for startups, MSMEs, and large enterprises; supporting IP creation, global market access, and quality certification; and integrating space applications into rural development, agriculture, and public service delivery.

 

The policy’s focus areas span upstream and downstream commercial space activities; defence space, electronics, and space research including astronomy and astrophysics. The government says it will support enterprises involved in developing, testing, launching, operating, and monitoring space assets, including emerging sectors such as space tourism, space-based manufacturing, and space mining.

 

It will also support enterprises engaged in designing and manufacturing satellites, launch vehicles, and related components through specialised facilities and support mechanisms. Priority will be given to firms developing indigenous capabilities in propulsion, guidance, navigation, payloads, avionics, control systems, power systems, thermal systems, and structural elements. Support will extend to enterprises building launchpads, telemetry facilities, and tracking stations to create a comprehensive launch infrastructure.

 

On the downstream side, the focus will be on earth observation, satellite communications, and positioning, navigation, and timing.

New 2025–30 plan sets up ₹11 trn IT liftoff

 

Karnataka, which accounts for about 44 per cent of the nation’s total software exports, has also unveiled its information technology (IT) policy for 2025–30. The state is targeting IT exports of ₹11.5 trillion by 2030, up from ₹4.09 trillion in 2024. The new policy aims to lift the IT sector’s contribution to gross state value added to 36 per cent from 26 per cent and generate more than 9 million direct and indirect jobs.