In a move to transition from planning to hardware realization, Finance Minister Nirmala Sitharaman allocated ₹13,705.63 crore to the Department of Space for FY2026-27 during the Union Budget on February 1, 2026.
While the headline reflects a modest 2.1% hike over the previous year’s budget estimate (₹13,416 crore), the allocation is a significant 10% jump over the Revised Estimates of ₹12,448.60 crore, signaling a push to get “steel on the ground” for India’s most ambitious missions.
SEO Title: ISRO Budget 2026: ₹13,706 Cr Outlay to Drive Gaganyaan & NGLV Hardware
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Meta Description: ISRO received a 2% budget hike to ₹13,705.6 crore in Budget 2026. Explore the 20% surge in capital expenditure for Gaganyaan, NGLV, and planetary science.
1. Budget Breakdown: Shifting to Hardware Realization
The 2026 budget marks a pivotal shift: India is moving away from preparatory R&D and toward the actual build-phase of heavy-lift rockets and human-rated modules.
| Head of Expenditure | Allocation (₹ Crore) | YoY Change (vs. RE) | Primary Focus |
| Space Technology | ₹10,397.06 | ↑ 8.3% | Gaganyaan, NGLV, & Satellites |
| Space Applications | ₹1,725.06 | ↑ 6% | Earth Observation & Disaster Management |
| Space Sciences | ₹569.76 | ↑ 208% | Planetary Exploration & Telescopes |
| INSAT Systems | ₹130.93 | ↓ 36% | Shift to Private Leasing Models |
- Capital Surge: Capital expenditure—the money spent on building physical assets—is projected to grow by 20% compared to last year’s revised estimates, hitting ₹6,375.92 crore.
- Space Science Triple-Jump: The massive 3x increase in Space Sciences funding is earmarked for upcoming planetary missions like Chandrayaan-4 (sample return), the LUPEX moon mission, and the Venus Orbiter.
2. Priorities for 2026-27: The Big Three
The Department of Space has outlined three specific mission priorities for this fiscal year:
A. Gaganyaan (Human Spaceflight)
With the total program budget recently expanded to ₹20,193 crore, the FY27 funds will support the first uncrewed orbital flights and the development of the Bharatiya Antariksh Station (BAS).
B. Next Generation Launch Vehicle (NGLV)
The NGLV, or “Soorya,” is India’s upcoming 3-stage partially reusable heavy-lifter. The budget supports its early hardware testing, aiming for a payload capacity of 30 tonnes to LEO—three times that of the current LVM3.
C. Astrophysics & The “Four Telescopes”
In a rare boost for pure science, the FM announced the setting up or upgrading of four major observational facilities:
- National Large Solar Telescope
- National Large Optical-Infrared Telescope
- Himalayan Chandra Telescope
- COSMOS 2 Planetarium
3. The Private Sector & NSIL
The budget also reinforces the government’s strategy of delegating commercial operations to NewSpace India Limited (NSIL).
- NSIL Revenue: While receiving only token direct support, NSIL’s internal resources are projected to rise to ₹1,403 crore, reflecting its success in commercial satellite launches.
- IN-SPACe Support: Funding for the private sector regulator was set at ₹194.57 crore to facilitate deeper startup integration in rocket and satellite subsystems.
Conclusion: A “Build Phase” Budget
Though the 2% hike may seem conservative on paper, the internal redistribution toward capital expenditure tells a different story. By focusing on hardware realization and planetary science, the 2026 Budget ensures that ISRO has the tools to transition from a regional player to a global heavyweight in deep-space exploration.
