States have a role in developing the space sector

Nara Lokesh highlighted how State governments can contribute to India's space economy, even though the sector is largely governed by the Central Government.

Addressing a session on India's New Space Economy during the second day of the CII Partnership Summit 2026 in Visakhapatnam on November 13, he said Andhra Pradesh was following a systematic approach to building sector-specific industrial ecosystems by identifying key industries, mapping stakeholders and attracting companies and investments.

MSMEs can strengthen space industry supply chains

Lokesh emphasised the importance of vertical integration, which involves bringing component manufacturers, sub-component suppliers and vendors into the ecosystem to support major space companies such as Skyroot.

He noted that Micro, Small and Medium Enterprises (MSMEs) could play a significant role in this supply chain. Citing an example, he referred to an MSME that had manufactured a shield for a rocket.

According to him, connecting smaller manufacturers with major space companies could help establish a stronger domestic industrial network.

Industry and academia must work together

The Minister also highlighted horizontal integration, which involves bringing educational institutions and industry closer together.

He called for academic curriculum reforms, greater research opportunities and improved testing and certification facilities through Centres of Excellence.

Lokesh referred to the collaboration with IIT Tirupati to establish a Centre of Excellence in the energy sector, particularly in view of the growing manufacturing cluster involving ingots, solar wafers and solar cells in the region.

Call for a dedicated national space industry policy

Lokesh stressed the need for a dedicated national policy to develop an integrated space industry ecosystem. He urged State governments to identify opportunities across the entire value chain and attract major companies along with their supporting suppliers.

He said stronger connections between space companies, MSMEs, suppliers, research institutions and universities would be important for India's emerging space economy.

Andhra Pradesh looks to expand its space sector presence

The remarks reflect Andhra Pradesh's ambition to develop a wider aerospace and space technology ecosystem through investment, manufacturing, research and academic partnerships.

Building these connections could create opportunities for MSMEs, startups, students and technical professionals while strengthening the State's role in India's expanding space industry.