Budget 2023: Will the budget give wings to India’s flight in space? Know the budget wishlist of the space industry

Budget 2023: Finance Minister Nirmala Sitharaman is going to present the country’s budget 2023 in the Parliament on February 1, 2023. The general public of the country has a lot of expectations from this budget, but it is also a very important budget for all the sectors involved in the development of the country. This is the last full budget to be presented before the 2024 Lok Sabha elections, and where populist announcements are expected keeping the elections in mind, important sectors like the space sector are also expected to meet many demands.

These are the demands to promote production linked incentive and research and development

Production Linked Incentive (PLI) scheme, government financial assistance, exemption from Goods and Services Tax (GST) are on the wish list of Budget 2023 of the Indian Space Association (ISPA). According to ISPA Director General, Lt Gen AK Bhatt (Retd), suggestions/wish list were received from the space industry on tax policies and incentives to promote investment, research and development, and employment in the space sector. The space sector lobby body said the PLI for the sector will boost research and development in India and provide incentives to entities engaged in the space sector.

Expectations of government financial exemption remain intact- ISPA

ISPA also wants the government to provide financial support through loans, grants and tax incentives for companies and organizations in the space sector. AK Bhatt said, “Since the new space policy is in its final stages of development, the provision of tax exemption for startups should be continued till the existing policy is issued/implemented.”

Tax exemption for space-tech startup companies – ISPA

The industry body told Angel Tax, “Considering that most of the space-tech companies in India are startups and access to capital is an issue, references to the rate and treatment of short term capital gains tax in respect of listed and unlisted entities It will be beneficial to make commonality and also provide relaxation. The industry also wants to set up space technology parks and create a pool of experts for harnessing the space ecosystem.

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