AP builds integrated ecosystem to boost space economy
Andhra Pradesh is developing a space economy ecosystem by attracting investments, strengthening supply chains and connecting industries with academic institutions to boost innovation and growth.
VISAKHAPATNAM: Andhra Pradesh is working towards establishing a comprehensive ecosystem for India’s emerging space economy, with a focus on attracting investments, strengthening supply chains and encouraging collaboration between industries and academic institutions, Information Technology Minister Nara Lokesh said on Friday.
Speaking at a session on India’s New Space Economy during the second day of the CII Partnership Summit 2026 in Visakhapatnam, Lokesh said the space sector was entering an important phase, offering significant opportunities for startups, entrepreneurs and research institutions.
He said the state was following a systematic approach to developing sector-specific ecosystems by identifying key industries, mapping stakeholders and attracting companies and investments. He emphasised the importance of both vertical and horizontal integration to build a strong industrial network.
Explaining vertical integration, Lokesh said the government was looking to attract manufacturers of sub-components, suppliers and vendors that support major space companies such as Skyroot in rocket development and launches. He highlighted the contribution of Micro, Small and Medium Enterprises (MSMEs) to the supply chain, citing an exhibitor who had developed a rocket shield.
On horizontal integration, he stressed the need to connect academic institutions with industries through updated curricula, research opportunities and improved testing and certification facilities. He also highlighted collaboration with IIT Tirupati to establish a Centre of Excellence in the energy sector, particularly to support the growing manufacturing cluster in the region.
Lokesh called for a dedicated national policy to develop an integrated space industry ecosystem. He said state governments should proactively identify companies across the entire value chain and encourage them to establish operations within common industrial clusters.
Reaffirming the government’s commitment, Lokesh expressed confidence that Andhra Pradesh would translate its development vision into reality under Chief Minister N. Chandrababu Naidu’s leadership.
