Tamil Nadu To Launch Dedicated Spacetech Policy

The Tamil Nadu cabinet has approved a dedicated space policy to foster spacetech startups in the state.

In a post on X, Tamil Nadu commerce minister TRB Rajaa said that the new policy will look to attract spacetech investments worth INR 10,000 Cr in the state and create at least 10,000 “high-value” direct and indirect jobs over the next decade.

He added that the policy is envisaged to build a “future-ready skilled workforce” in space technologies and services.

“In a landmark decision today, the Tamil Nadu Cabinet has approved the Tamil Nadu Space Industrial Policy 2025 a bold blueprint to catapult our state into the high-orbit economy of space technology and advanced manufacturing… This policy is more than just a mission plan — it’s a critical launchpad for our One Trillion Dollar economy vision,” said Rajaa.

The minister noted that the policy will look to create a full-stack spacetech ecosystem in the state, including building payloads, platforms and launchpads as well as downstream analytics.

He said that incentive packages will be offered to startups and enterprises for setting up space manufacturing and services at the upcoming “Space Bays”.

“We’re opening the gates to MSMEs, deep-tech startups, R&D units, and global majors, all through our upcoming #TNSpaceBays, which shall be special industrial zones designated to power orbital ambitions from our very own Tamil soil,” Rajaa added in the post.

Space Bays are proposed industrial zones for the spacetech industry.

Segments such as space launch vehicle manufacturing, satellite and payload production, propellant chemicals and downstream space applications will be the key focus of the policy, said Rajaa.

Under the policy, the state government will collaborate with “private industries” to set up space facilities on the lines of Tiruchirappalli engineering and technology (TREAT) cluster. Rajaa added that the state authorities are planning to build a “space propellant park” in Tuticorin.

This comes nearly a year after the state authorities floated the draft Tamil Nadu Space Industrial Policy 2024 in July last year. Sources told The Hindu businessline that many changes have been made to the draft and have been incorporated in the new policy.

As per the report, the government will also offer a capital subsidy of up to 20% for service and manufacturing companies under the new policy.

Notably, the development comes a month after state finance minister Thangam Thennarasu, in his Budget 2025-26 speech, . At the time, he also proposed a “foundation and prototype development lab” in Chennai for incubating spacetech ventures and satellite testing.

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