The Tamil Nadu Cabinet on Thursday approved the Tamil Nadu Space Industrial Policy 2025, as announced in the state budget, with an aim to attract ₹10,000 crore in investments, create at least 10,000 jobs, and develop a skilled talent pool in the space technology sector.
According to Industries Minister Dr TRB Rajaa, the policy is a significant step toward establishing Tamil Nadu as a leading hub for space-related industries in India.
Drawing inspiration from Florida’s Space Coast in the United States, the Tamil Nadu government is planning to set-up a dedicated ‘Space Bay’ across four southern districts—Madurai, Thoothukudi, Tirunelveli, and Virudhunagar.
This proposed corridor is expected to boost space-tech development by providing infrastructure and an enabling environment for businesses in the sector. At the core of this policy is the upcoming Kulasekarapattinam spaceport, which is currently under construction by the Indian Space Research Organisation (ISRO).
The facility is being developed to support the launch of small satellites, a segment gaining increasing importance in the global space economy. Leveraging this project, the new policy outlines a comprehensive framework to build a vibrant ecosystem for space technology in the state.
Addressing the media following the Cabinet meeting, Minister Rajaa described the day as a “golden moment” for Tamil Nadu’s space aspirations.
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He said the launch of the policy marks not just a major milestone for the state, but also a step forward in positioning Tamil Nadu as an attractive destination for global space-tech enterprises.
The minister emphasised that the policy is focused on equipping the youth with industry-ready skills and encouraging the growth of startups.
He noted that even companies with investments starting from Rs 25 crore would find opportunities to grow within the state’s evolving space ecosystem. The goal, he said, is to create an environment where young entrepreneurs can build and scale innovative space technology ventures.
To support innovation, the policy offers a reimbursement of 50 per cent of costs incurred by companies on activities like patent registration, copyrights, trademarks, and geographical indicators during the investment period.
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Rajaa highlighted the success of Agnikul Cosmos, a startup incubated at IIT Madras that developed India’s first 3D-printed rocket, Agnibaan, as a prime example of the kind of innovation the state aims to foster. Startups and firms with an annual turnover of Rs 25 crore or less will be eligible for support under the policy.
Moreover, the policy provides a Special Structured Package of Incentives for space sector projects with investments exceeding Rs 300 crore, under the broader framework of the Tamil Nadu Industrial Policy for sunrise sectors.
The Space Industrial Policy 2025 has also been designed to align with the Indian Space Policy 2023 introduced by the central government, which has opened the door to greater private sector participation in space exploration and services. While ISRO continues to lead strategic missions, the central policy encourages startups and private firms to contribute to technological advancement and cost-effective innovation.
With these measures, Tamil Nadu aims to play a pivotal role in shaping the future of India’s space sector and positioning itself as a global leader in space technology and innovation.
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