
India’s ‘Make in Space’ Dream: Gujarat, Tamil Nadu, Karnataka to Lead as Manufacturing Hubs
India is gearing up to become a major player in the global space industry, and the country's 'Make in India' space ambitions are taking shape with Gujarat, Tamil Nadu, and Karnataka positioned as key manufacturing hubs. These states will focus on different aspects of the space program, aiming to build payload and launch vehicle capabilities.
Pawan Goenka, chairperson of the Indian National Space Promotion and Authorisation Centre (IN-SPACe), revealed that these three states, with the potential addition of two more, will form a network of space manufacturing hubs. IN-SPACe is the nodal agency facilitating private sector participation in the Indian space sector.
“It will be like a Lego puzzle. Each state will be a separate piece to aid the larger space programme,” Goenka stated, highlighting the collaborative nature of this ambitious project.
Here’s a breakdown of the planned focus for each state:
- Gujarat: Will concentrate on the manufacturing of satellites and payloads. The state recently launched its Space Tech Policy (2025-2030), offering incentives for the design, development, manufacturing, and deployment of space technologies. The policy allots 25 percent of the total cost of satellite unit manufacturing, capped at Rs 5 crore per launch per eligible unit.
- Tamil Nadu: Will specialize in launch vehicles. The state has already announced the establishment of a Space Industrial and Propellant Park in Kulasekarapattinam, Tuticorin, spanning 2000 acres. The government also plans to set up a Centre of Excellence with IN-SPACe's guidance.
- Karnataka: As India’s technology hub, Karnataka will oversee overall manufacturing and assembling. The state may also choose a specific focus area or adopt a more generalized approach to the program. It will be partnering with IN-SPACe to set up a Centre of Excellence to bolster space manufacturing.
All three states have signed Memorandums of Understanding with IN-SPACe, solidifying their commitment to the project.

Further boosting private sector involvement is the finalized Space Activities Bill, which grants statutory powers to IN-SPACe. The bill aims to streamline regulations and reduce barriers to entry for private firms, potentially significantly impacting India’s precision manufacturing sector. With affordable insurance for space assets included, the Bill encourages greater investment and innovation within the space industry.
India is targeting a $44 billion space economy by 2033, with $11 billion expected from exports. This legislation is seen as a pivotal step towards achieving that ambitious goal, by creating regional clusters of precision manufacturing expertise and innovation.
The focus on specialized manufacturing within different states, paired with government support and regulatory clarity, sets the stage for a dynamic and rapidly growing Indian space industry. The bill, the specialization, and increased funding open India up for new startups and organizations to expand into space-based programs. What impact will the rise of these domestic space programs have on international collaboration and competition? Share your thoughts in the comments below.