Andhra Pradesh Education and IT Minister Nara Lokesh on Friday, 13 November 2026, declared that Andhra Pradesh will build a distinctive space economy ecosystem unlike any other state in India, speaking at a session on India's New Space Economy at the CII Partnership Summit 2026 in Visakhapatnam. The minister outlined a systematic, multi-stakeholder strategy anchored in vertical and horizontal integration to position Andhra Pradesh as a national leader in the emerging space sector.

Andhra Pradesh's Space Economy Strategy

Lokesh said the space economy is at the beginning of an exciting phase, with enormous opportunities yet to be explored, and that Andhra Pradesh had already created a strong sense of excitement around the sector. He emphasised that a thriving industrial ecosystem cannot be built through incentives or freebies alone, but requires collective effort and collaboration among all stakeholders — including thought leaders, entrepreneurs, and academia.

The minister said the state is adopting a systematic approach to developing sector-specific ecosystems by identifying key industries, mapping all stakeholders, and attracting investments and companies to Andhra Pradesh.

Vertical Integration: Strengthening the Supply Chain

Lokesh explained that vertical integration involves attracting sub-component manufacturers, suppliers, and vendors that support major space companies such as Skyroot in developing and launching rockets. He noted that a significant number of these supporting companies are Micro, Small and Medium Enterprises (MSMEs), which play a crucial role in strengthening the supply chain. As an example, he cited meeting an MSME exhibitor that had manufactured a shield for a rocket, underscoring the depth of industrial capability already present in the state.

Horizontal Integration: Academia Meets Industry

On horizontal integration, Lokesh said it involves bringing academia and industry together by revamping academic curricula, encouraging research, and strengthening testing and certification facilities through Centres of Excellence. He highlighted an ongoing collaboration with IIT Tirupati to establish a Centre of Excellence in the energy sector, particularly relevant given the growing cluster of ingot, solar wafer, and solar cell manufacturing companies in the region. Addressing college students at the summit, he stressed the growing opportunities for startups, entrepreneurs, and research institutions in the space economy.

Call for a National Policy on Space Industry

Lokesh also called for a dedicated national policy to develop an integrated space industry ecosystem, saying state governments should proactively identify and attract companies such as Skyroot. He said a systematic approach to mapping the entire value chain — component manufacturers, suppliers, and vendors — and consolidating them within a common industrial ecosystem was essential for long-term success. He acknowledged that the space sector is largely governed by the Centre, but argued that state governments have a vital complementary role to play through targeted ecosystem development.

What's Next for Andhra Pradesh's Space Ambitions

With the CII Partnership Summit 2026 serving as a platform to signal intent to investors and industry, Andhra Pradesh is positioning itself to attract both anchor space companies and their broader supplier networks. The state's focus on combining MSME supply chain development, academic collaboration, and investment attraction could serve as a replicable model — if execution follows through on the vision outlined at Visakhapatnam.