The fund would help India’s space economy, which is currently worth S8.4 billion, grow to $44 billion by 2033
New Delhi: The government has approved a Rs 1000 crore Venture Capital (VC) Fund, a crucial step towards strengthening the country’s space sector. This decision was made at a Union Cabinet meeting chaired by Prime Minister Narendra Modi.
This fund, managed by IN-SPACe (Indian National Space Promotion and Authorization Center), intends to help entrepreneurs and businesses in India’s fast expanding space sector, placing the country as a global space leader.
This large funding infusion is intended to boost India’s space industry, which is expected to grow fivefold over the next decade. The government hopes to accelerate improvements in space technology, boost job creation, and ensure the sector’s long-term viability by providing financial support to roughly 40 startups.
The VC fund offers flexible investment options for startups at various stages, ranging from Rs 10 crore to Rs 60 crore, ensuring necessary support and encouraging innovation.
India’s space industry is thriving with 250 startups, but financial challenges persist. The government’s fund aims to boost investor confidence, attract private capital, and prevent talent and business outflow to foreign markets.
The fund aligns with India’s ‘Atmanirbhar Bharat’ vision, supporting startups in space technology to reduce dependence on foreign technology and strengthen global standing. It will create thousands of jobs across the space industry supply chain.
The Indian space sector, valued at $8.4 billion, is set to reach $44 billion by 2033, with a venture capital fund aiming to attract private investments and solidify India’s global space economy.
The government’s commitment to fostering innovation, economic growth, and job creation through this fund signals a promising future for India’s space sector.
