India’s Finance Minister Sitharaman announced the creation of a 100 billion rupee fund to support space tech startups in the country, a move that industry leaders say will strengthen India’s position in the global space market.
The fund is expected to benefit over 180 space tech startups, helping to quadruple India’s share of the global space economy to 8 percent, potentially reaching $44 billion over the next decade.
Details of the fund’s establishment or investment strategy have not been disclosed.
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Next articleThe fund is expected to benefit over 180 space tech startups endorsed by the Indian government.
What is the story
Finance Minister Nirmala Sitharaman, in her Budget speech for 2024-25 on Tuesday, announced a Rs 1,000 crore venture capital fund to boost India’s space economy. The fund is part of a larger Rs 1,000 crore pool of capital aimed at spurring private sector innovation across industries. Sitharaman said India’s space economy will expand five-fold over the next decade.
Details of the Space Economy Fund remain unclear
Despite the announcement, Sitharaman did not provide specifics on which organisation would set up the fund or how the fund would be invested. The initiative is expected to stimulate private-sector led research, innovation and commercial development in space technology. The move was hailed as “great news” by Srinath Ravichandran, co-founder of space tech start-up Agnikul.
Industry leaders express optimism about space fund
Pawan K. Goenka, chairman of India’s private space sector regulator IN-SPACe, said the fund would help startups secure equity investments at the venture capital stage more easily. Vishesh Rajaram, managing partner at Speciale Invest, said he strongly believes the Rs 1,000 crore fund for space startups will boost India’s dominance in the global space market.
India’s space economy shows promising growth
The Economic Survey 2023-24 highlights that India currently operates 55 space assets, including 18 communications satellites and 20 Earth observation satellites. Over 300 Indian entities have submitted 440 applications to IN-SPACe for various space-related activities. In addition, 51 Memorandums of Understanding and 34 Joint Project Implementation Plans have been signed with non-governmental entities to support space initiatives.
Venture capital fund to benefit space tech startups
The venture capital fund is expected to benefit over 180 government-recognized space technology startups. This is in line with the government’s efforts to expand India’s space economy and establish India as a major player in the global commercial space market. According to IN-SPACe, India’s space economy could reach $44 billion over the next decade from the current $8.4 billion, and India’s share of the global space economy would quadruple to 8%.
