CHENNAI: The Tamil Nadu Cabinet, on Thursday approved the Tamil Nadu Space Industrial Policy 2025 as announced in the budget, that looks to attract Rs 10,000 crore in investment in space tech, create at least 10,000 jobs in the sector and improve talent, according to Industries Minister Dr T R B Rajaa.
Drawing inspiration from Florida’s famed Space Coast, the Tamil Nadu government may establish a ‘Space Bay’ across four southern districts—Madurai, Thoothukudi, Tirunelveli and Virudhunagar—as part of the policy.
At the heart of this strategy is the upcoming Kulasekarapattinam spaceport, currently under construction. The facility, being developed by the Indian Space Research Organisation (ISRO), is expected to focus on launching small satellites, an increasingly vital segment in the global space economy. Building on this development, the TN Space Industrial Policy outlines an ambitious framework to foster a robust regional space ecosystem.
Addressing reporters after the Cabinet meeting that approved the policy, Rajaa said, “Today marks a golden day for the state’s space sector. The launch of this policy is not just a milestone for the state, but a significant step forward in making Tamil Nadu a key destination for space tech businesses worldwide.”
Rajaa added that the policy is designed to equip young people with industry-ready skills and promote startups. “Even small companies, with investments as low as Rs 25 crore, will find ample opportunities to thrive. We aim to create an ecosystem where young entrepreneurs can build space tech companies that will push the boundaries of innovation,” he added.
He further said that the policy will reimburse 50% of the expenditure incurred by firms during the investment period for activities such as registering patents, copyrights, trademarks and geographical indicators.
Citing the example of India’s first 3D-printed rocket, Agnibaan, launched by the IIT Madras startup Agnikul Cosmos, he said that startups and companies with an annual turnover of Rs 25 crore or less will be eligible to participate in the space ecosystem. The Tamil Nadu government will offer financial support to space startups undertaking projects within the state, he said.
Additionally, space sector projects exceeding Rs 300 crore will be eligible for a Special Structured Package of Incentives, as per the Tamil Nadu Industrial Policy for sunrise sectors.
Importantly, the new policy aligns with the Government of India’s Indian Space Policy 2023, which has paved the way for private enterprise in space exploration and services. While ISRO continues to spearhead major missions, the central government is increasingly leveraging the capabilities of startups and private firms to boost innovation and reduce costs.