In a groundbreaking move to boost India’s space industry, Finance Minister Nirmala Sitharaman announced a Rs 1,000 crore venture capital fund dedicated to the space economy over the next decade. This ambitious initiative aims to foster innovation, support emerging space startups, and strengthen India’s position in the global space market.
It has been reported previously, the Indian space economy has the potential to reach US$44 billion in the next 10 years from the current US$8.4 billion, expanding India’s share of the global space economy by four times from current 2 percent to 8 percent.
Venture Capital Fund
The venture capital fund is a strategic investment in the growing space sector, designed to provide crucial financial support to startups and enterprises involved in space technology and exploration. With the global space economy expected to reach new heights, this fund will enable Indian companies to compete and excel on an international scale.
This initiative aligns with the government’s broader vision of making India a hub for space innovation and development. The fund will focus on various aspects of the space economy, including satellite development, launch services, space research, and related infrastructure. By encouraging private sector participation, the government aims to harness the creativity and technical prowess of Indian entrepreneurs and scientists.
The Rs 1,000 crore fund is expected to catalyse significant advancements in space technology, opening new avenues for scientific discovery and commercial opportunities. It will also contribute to job creation and economic growth, particularly in high-tech sectors.
Welcoming the announcement, here is what Private Sector says:
Arpan Sahoo, Co-founder and Chief Operating Officer, KaleidEO: “The establishment of the Rs 1000 VC Fund addresses a crucial funding gap in nascent space R&D. This initiative will be transformative in building sovereign capabilities, fostering local IP creation, and driving innovation.”
According to Sahoo: “these funds will enable startups to attract talent, establish local facilities, and develop export potential for the next decade. As the Indian economy and startup ecosystem, particularly the NewSpace sector, continue to grow, the consistent revenue generation and performance of space tech startups will be vital in reinforcing the Government’s confidence in the Indian NewSpace ecosystem.”
Vishesh Rajaram, Managing Partner, Speciale Invest, says: “Specialè Invest, is an early investor and strong believer in India’s leadership in the global space economy, and has been one of the most active investors in this domain since 2018. Our portfolio includes investments in launch vehicles (Agnikul Cosmos), satellite manufacturing & earth observation (Galaxeye Space, Kawa Space), communication (Astrogate Labs), and in-orbit economy (InspeCity).
Adding, “We strongly believe that Rs 1000 Crores fund for space startups and space economy will catalyse India’s dominance in the global space market! And I believe the trust and focus from the government combined with the FDI policy announced earlier this year will lead to more investment participation in the sector from India and internationally.”