Finance Minister Nirmala Sitharaman has introduced a Rs 1,000 crore venture capital fund for Indian space technology ventures as a major highlight of the Union Budget 2024-25.
The fund comes as part of the government’s broader strategy to position India as a leading player in the global space industry.
India’s space economy is currently worth about $8 billion, but the government aims to expand it to $44 billion by 2033.
“This is in keeping with the growing importance of space technology and its potential to have a significant impact on the national and global economy. Industry players are confident that the fund will attract significant private investment, encourage entrepreneurial ventures and strengthen India’s position in the competitive space industry.”
The announcement came after the Economic Survey 2023-24 noted that the space sector has made impressive progress in the areas of rockets, satellites, spacecraft and ground infrastructure used for space exploration.
“Currently, India operates 55 space assets, including 18 communications satellites, nine navigation satellites, five scientific satellites, three meteorological satellites and 20 Earth observation satellites,” the study said.
Lt. Gen. AK Bhatt (retd), secretary general of the Indian Space Association (ISpA), said the space industry is advocating for increased financial incentives to support the country’s burgeoning space startups.
“The announcement of a Rs 1,000 crore venture capital fund is a step towards addressing the fundraising challenges faced by startups in this capital-intensive sector. Further, we are hopeful that the proposal to set up 12 industrial parks across India will also include the space sector as this will provide a major boost to the space and satellite manufacturing industry, which has been calling for the establishment of a space park for long,” he added.
However, Chirag Gupta, managing partner at 8X Ventures, said while the Rs 1,000 crore venture capital fund was a sign of confidence, more non-financial support was needed.
“The space sector is capital and resource intensive and has great potential for growth. As India moves towards more ambitious projects like Gaganyaan and a dedicated space station, it needs more funding and technological, academic and corporate support to fuel this growth and encourage innovation,” he said.
