Andhra Pradesh Launches India’s First Space Policy, Targets ₹25,000 Cr Investment
In a groundbreaking move, Andhra Pradesh has become the first Indian state to launch a dedicated space policy, aiming to transform into a space-tech powerhouse.

Amaravati: In a groundbreaking move, Andhra Pradesh has become the first Indian state to launch a dedicated space policy, aiming to transform into a space-tech powerhouse. The newly introduced Andhra Pradesh Space Policy 4.0 sets an ambitious target to attract ₹25,000 crore in space sector investments over the next decade.
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The state government, led by Chief Minister N. Chandrababu Naidu, approved the policy over the weekend, aiming to create 5,000 direct and 30,000 indirect high-value jobs by 2035.
Twin Space Cities in Lepakshi and Tirupati
The policy outlines plans to establish two integrated space cities:
- Lepakshi Space City (Innovation Hub): Located near Bengaluru, this cluster will serve as the premier center for upstream and downstream space technologies, research, and development.
- Tirupati Space City (Manufacturing Hub): Situated in Routhusurmala, Chittoor district, this hub will focus on satellite and payload assembly, launch vehicle production, electronics, and avionics.
The state has earmarked 30,000 acres in Lepakshi and 2,800 acres in Tirupati for development.
Fiscal Incentives and Infrastructure Support for MSMEs
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Under MEDP 4.0, Andhra Pradesh’s manufacturing development policy, the state will offer:
- Subsidies up to 75% for MSMEs
- Land cost rebates and SGST reimbursements
- 50% reimbursement on infrastructure development, up to ₹3 crore per lab
- Dedicated logistics corridor to Sriharikota Spaceport with a six-lane access road
Supporting ISRO and National Space Missions
AP’s Space Policy aligns closely with India’s long-term space roadmap, including:
- Production support for Launch Vehicle Mark-3 and Next Generation Launch Vehicle (NGLV)
- Collaboration with ISRO and NewSpace India Limited (NSIL)
- Licensed production of launch vehicles for India’s future space missions
Tirupati hub will produce semi-cryogenic engines, aluminium tanks, and other critical components.
Boost for Startups: ₹1,100 Crore in Funding
To foster innovation, the state will establish:
- ₹100 crore SpaceTech Fund for shared infrastructure
- ₹1,000 crore VC fund, registered with SEBI as an Alternative Investment Fund
These will be targeted toward startups and private firms entering the space-tech ecosystem.
Aligned with India’s Space Vision: Chandrayaan-4 to Lunar Mission 2040
The Andhra Pradesh Space Policy supports India’s future space goals:
- Chandrayaan-4 (2027)
- Indian Space Station – Bharatiya Antariksha Station (BAS) by 2035
- India’s First Human Moon Mission by 2040
With Space Policy 4.0, Andhra Pradesh is set to become the epicenter of India’s space revolution, offering massive opportunities for innovation, manufacturing, and global partnerships. The move is expected to create thousands of jobs, bolster national space programs, and position Andhra Pradesh on the global space-tech map.