According to reports, the Tamil Nadu cabinet cleared the Space Industrial Policy 2025, with an ambition to position the state as a key player in the space economy. The policy seeks to draw investments totaling Rs 10,000 crore and generate 10,000 high-quality jobs in manufacturing, space-tech services, and related applications.

Industries Minister TRB Rajaa stated following the Cabinet meeting led by Chief Minister MK Stalin that the policy encompasses more than just manufacturing. It will likewise create opportunities for startups, MSMEs, and major participants throughout the value chain.

He mentioned that the Tamil Nadu Space Policy is founded on three main pillars: attracting investments to Tamil Nadu’s space industry, generating high-quality jobs for young people in the sector, and developing a skilled workforce prepared for future space technologies and services.

Tamil Nadu isn't the sole state to declare a space policy. Its adjacent state, Karnataka, has also published a draft document, Karnataka Space Technology Policy, 2024-29, which aims to secure 5 percent of the global space technology market share.

Capitalizing on the forthcoming launchpad at Kulasekarapattinam by the Indian Space Research Organization (ISRO), Tamil Nadu has declared in its 2024 draft policy that it will establish specialized ‘Space Bays’ — industrial zones in Madurai, Thoothukudi, Tirunelveli, and Virudhunagar. These areas will be crafted to accommodate space-tech firms and startups, providing customized incentive packages for both early-stage and established entities.

The state aims to expand upon its solid base in heavy engineering, precision manufacturing, and electronics, industries crucial to the space sector.

Prominent private sector companies currently operating in the state are LMW, L&T, Aerospace Engineers, Agnikul Cosmos, and GalaxEye.

The state additionally gains from being close to ISRO facilities, including the ISRO Propulsion Complex (IPRC) in Mahendragiri, as well as VSSC and LPSC in the nearby Thiruvananthapuram.

The draft policy included provisions for fast-tracked, no-cost approvals for MSME units through a single-window system run by the industries department.

 

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Large-scale projects will be facilitated by the Tamil Nadu Industrial Development Corporation (TIDCO) via the Guidance Tamil Nadu portal. Space companies will also be eligible for a 50 percent subsidy on clearance charges. The final policy is yet to be made public.