India has expanded its private space manufacturing sector through the latest Space Facilities Approval India initiative. The Department of Space approved new technical facilities in Gujarat and Tamil Nadu on 22 May 2026 to support startups and industries involved in spacecraft and launch vehicle production. The projects are being developed with the support of the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

Shared Facilities for Space Industry

The new Common Technical Facilities will work as shared engineering hubs for startups and large companies. These centres will provide advanced infrastructure for testing, validation, and integration of space hardware.

Many private companies cannot afford expensive testing systems on their own. These shared facilities will help them access high-end rocket and satellite testing equipment at lower costs. This move is expected to boost innovation and manufacturing in India’s space sector.

Gujarat to Get Space Manufacturing Park

A new Space Manufacturing Park will be established at Khoraj near Ahmedabad in Gujarat. The park will mainly focus on spacecraft production and complex payload systems.

The facility will support activities such as structural assembly, electronic validation, and payload integration. Payload systems are the special instruments or equipment carried by spacecraft and launch vehicles for different missions.

The Gujarat hub is expected to attract startups and industries involved in satellite and spacecraft manufacturing.

Tamil Nadu to Develop Space Vehicles Cluster

Tamil Nadu will develop a Space Vehicles Cluster at Thoothukudi. The location is close to the upcoming small vehicle launch complex at Kulasekharapatnam.

This facility will mainly focus on the manufacturing, testing, and integration of complete launch vehicle systems. The central government has sanctioned ₹100 crore for the specialised facility in Thoothukudi.

The project is expected to strengthen India’s launch vehicle manufacturing capabilities and create new opportunities in the private space sector.

Space Facilities Approval India and IN-SPACe Role

IN-SPACe, or the Indian National Space Promotion and Authorisation Centre, is playing a key role in the development of these facilities. The organisation will procure, install, and initially operate the technical systems.

Later, ownership will be transferred to the respective state governments. While the states will provide land, buildings, and civic infrastructure, the central government will support the technical setup.

This model combines state infrastructure support with central technical expertise to improve India’s space manufacturing ecosystem.