Union Finance Minister Nirmala Sitharaman announced that the Indian government will establish a venture capital fund worth ₹1000 crore to boost the country’s space sector. This significant investment aims to propel growth in the space economy by supporting innovative startups and research initiatives in the field.
“The government has proposed to set up a venture capital fund of ₹1000 crore for the space economy,” Sitharaman stated. The fund is expected to stimulate advancements in space technology, enhance India’s position in the global space industry, and encourage private sector participation in space exploration and commercialisation.
Several key stakeholders, including the Indian Space Association (ISpA), the Indian National Space Promotion and Authorisation Centre (IN-SPACe), and Pixxel Space, have praised the provisions announced in Budget 2024-25, highlighting their potential to drive growth and development in the space sector.
Finance Minister Nirmala Sitharaman announced the establishment of a ₹1,000 crore venture capital fund aimed at expanding India’s space economy by fivefold within the next decade. “With our continued emphasis on expanding the space economy by five times in the next 10 years, a venture capital fund of ₹1,000 crore will be set up,” Sitharaman stated in the Lok Sabha while presenting the Union Budget.
IN-SPACe Chairperson Pawan Goenka emphasized that this focused venture fund would significantly boost new entrepreneurs and non-government entities (NGEs) in the space sector.
“The fund, along with existing policies, will fuel technological innovation and create a fertile ground for NGEs to thrive,” Goenka told PTI, expressing IN-SPACe’s commitment to supporting the growth of the space economy and nurturing an enabling ecosystem for NGEs.
Pixxel Space CEO Awais Ahmed noted that the venture capital fund would provide crucial financial support to innovative startups and companies, enabling them to scale their technologies and contribute to India’s space ambitions. “Such a significant investment underscores the government’s commitment to fostering a robust and dynamic space ecosystem,” Ahmed told PTI.
Agnikul Cosmos CEO Srinath Ravichandran echoed these sentiments, describing the venture capital fund as “wonderful news” for the sector. “This also shows that the government is continuing to strongly back its vision of making India have a larger chunk of the global space economy,” Ravichandran added.
KaleidEO COO Arpan Sahoo highlighted that the VC fund addresses a crucial funding gap in nascent space R&D, predicting that this initiative will be transformative in building sovereign capabilities, fostering local IP creation, and driving innovation.
ISpA Director General Lt Gen AK Bhatt (Retd) described the ₹1,000 crore VC fund as a significant step forward, addressing the funding challenges faced by nascent ventures in this capital-intensive domain. Bhatt also pointed out that the establishment of 12 industrial parks across India would provide a substantial boost to the space and satellite manufacturing industry, which has long called for the creation of space parks. “These measures are pivotal for the growth and development of India’s space ecosystem,” Bhatt said.
Anil Prakash, Director General of the Satcom Industry Association-India, praised the announcement of the venture capital fund as a commendable initiative that will significantly foster innovation and growth within the critical space industry. “Every rupee invested promises substantial returns, as the space sector holds immense potential for contributing to GDP growth and enhancing national infrastructure,” Prakash stated.
The collective response from these stakeholders underscores the broad support and optimism within the industry regarding the government’s commitment to developing India’s space sector.
FM Sitharaman is now presenting the first Union Budget of the Modi 3.0 government and her seventh consecutive budget during the Monsoon Session of Parliament. You can track the live updates here
With inputs from PTI