Andhra Pradesh Govt Launches Space Policy 4.0

• Andhra Pradesh launches Space Policy 4.0 to become India’s space manufacturing hub with major incentives for large firms, MSMEs, and startups.
• Two Space Cities planned in Sri Satya Sai and Tirupati, targeting ₹25,000 crore investment and 35,000 jobs.
• Strong startup support includes grants, seed funding, tech transfer aid, and rental subsidies.

As the global space economy hits more than $500 billion, Andhra Pradesh hopes to become India's top space manufacturing state. India's goal is to grab a $44 billion chunk of that pie by 2030, and under its new Space Policy 4.0, Andhra Pradesh wants to target large enterprises, MSMEs and start-ups for investment into the state. The government will offer investment subsidies up to ₹75 crore for large companies, as well as other tailored assistance for MSMEs and start-ups.

Under the Space Policy 4.0, Andhra Pradesh has established the Andhra Pradesh Space City Corporation, an SPV that will establish two Space Cities, one in Sri Satya Sai District along the Hyderabad-Bengaluru corridor, and the other in Tirupati. These zones will be focused on R&D, manufacturing and launch services.

The Senior Government Official said, "It will serve as the central agency to coordinate infrastructure development, raise startup funds, attract investments, facilitate industry partnerships, build partnerships to attract global demand, and liaise with all Government of India entities for domestic demand. The Corporation will also facilitate investors to ensure streamlined execution of space-related projects".

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He added, "The Government of Andhra Pradesh envisions positioning the state as a globally competitive and innovation-driven hub for space research, technology development, manufacturing, and launch services. The space sector is seen as a strategic catalyst for fostering high-technology employment, driving industrial expansion, and advancing scientific capabilities within the state".

Andhra Pradesh has several strengths to leverage, such as its location near India's only spaceport in Sriharikota, a varied industrial base, and a workforce that possesses advanced skills. The state would like to attract ₹25,000 crore in investment over the next decade and plans to create 5,000 direct jobs (including 1,800 related to satellite and launch vehicle) and 30,000 indirect jobs in space-linked sectors.

Micro, Small & Medium Enterprises (MSMEs) will also take advantage of a technology transfer subsidy of 50% of the acquisition cost (up to ₹1 crore) through the ₹100 crore funding corpus as part of Andhra Pradesh's incentive program. MSMEs avail several other incentives, such as power subsidies, net SGST reimbursement, and stamp duty exemption and reimbursement.

Startups receive grants of up to ₹15 lakh, seed funding of up to ₹50 lakh (equity-based), and Deeptech grants up to ₹1 crore. Go-to-market funding and rental subsidies for up to 30 employees are also available, making Andhra Pradesh an attractive option for the global space industry as it evolves.