BENGALURU: Space startups in the technology sector have termed the Union Budget’s proposal for a Rs 1,000 crore venture capital (VC) fund as a significant achievement for the sector.
The venture capital fund has been set up to advance the government’s plan to expand India’s space economy five-fold over the next decade and is said to inspire a new generation of space innovators and entrepreneurs.
Awais Ahmed, founder and CEO of Bengaluru-based space data company Pixel, called the announcement a milestone. Ahmed said the fund underscores the government’s commitment to developing a dynamic space ecosystem. He stressed that a larger fund is needed as the space sector grows, but called the proposal a “great start.”
The fund will help more large-scale companies emerge from India’s space startup ecosystem, said Srinath Ravichandran, co-founder and CEO of Chennai-based rocket manufacturer Agnikul Cosmos Ltd. He said this is in line with the government’s vision to increase India’s share of the global space economy.
The government projects India’s space economy to grow from $8.4 billion (about 2-3% of the global space economy) to $44 billion by 2033.
Pawan Kumar Chandana, co-founder and CEO of Hyderabad-based Skyroute Aerospace, said India needs to emerge as a strong player in two or three industry subsectors to reach its $44 billion target. “By strategically investing in both established capabilities and promising new technologies, India’s private space sector has the opportunity to capture a significant market share of the global space economy in the coming years,” he said.
Venture capital funds have the potential to drive this growth, according to Vishesh Rajaram, managing partner at deep tech venture capital firm Speciale Invest. “The confidence and attention from the Indian government, coupled with the FDI policy announced earlier this year, will see more investment participation in the space from India and abroad,” he said.
Digantara CEO Anirudh Sharma said the proposal marks a promising beginning, but execution will require a strategic approach with diversified investments. “We need to increase domestic customers, especially as space is a strategic sector. It is crucial for the state to act as the lead customer, drive demand and foster a strong ecosystem,” Sharma said.
Apurwa Masook, CEO of IISc-backed SpaceFields, said the fund, coupled with the abolition of angel tax, will benefit domestic and international investors. However, he noted that the already announced Rs 1 trillion fund for R&D and innovation in emerging sectors is yet to be operationalized.
Union Budget 2024 Live | Nirmala Sitharaman presented a record seventh consecutive Union Budget as Finance Minister under the Modi 3.0 government on 23 July 2024. The Budget brings tax cuts for the middle class, focuses on employment through skilling and encourages employers. You can follow the latest coverage, live news, in-depth opinions and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube and Instagram.
Published on 23 July 2024 at 22:28 IST
