Andhra Pradesh Proposes MSME-Led Supply Chain Development To Attract Space Investments

Visakhapatnam, Nov 14 (KNN) State governments can play a decisive role in developing India's emerging space economy by connecting major space companies with Micro, Small and Medium Enterprises (MSMEs) and academic institutions, Andhra Pradesh IT and HRD Minister Nara Lokesh has said.

Andhra Pradesh Proposes Dual Strategy For Space Sector Growth

Speaking at a session on ‘India’s New Space Economy’ on the second day of the 31st CII Partnership Summit 2026 in Visakhapatnam, Lokesh outlined a dual strategy of vertical and horizontal integration to position Andhra Pradesh as a destination for space-sector investments.

Explaining vertical integration, he said States should map the entire industrial value chain and attract sub-component manufacturers, suppliers, and vendors to support private launch companies such as Skyroot, The Hindu reported.

MSMEs Key To Strengthening Domestic Space Supply Chains

Highlighting the role of MSMEs in strengthening domestic supply chains, Lokesh cited his recent interaction with an MSME exhibitor that had manufactured a protective shield for a rocket.

On horizontal integration, he stressed the need to align academic curricula with emerging industry requirements and strengthen research, testing and certification infrastructure through Centres of Excellence.

State Seeks Stronger Industry-Academia Collaboration

Citing the State's collaboration with IIT Tirupati to establish a Centre of Excellence in the energy sector, he said a similar institutional model could support aerospace and space technologies. The energy-sector initiative is linked to the growing regional cluster of ingot, solar wafer and solar cell manufacturers.

Lokesh Calls For Dedicated National Space Policy

Lokesh also called for a dedicated national policy to develop an integrated space ecosystem, urging States to identify and cluster component vendors alongside major space companies.

He said bringing MSMEs, research institutions and academia into a common ecosystem could create entrepreneurial and employment opportunities for young professionals.

(KNN Bureau)