New Delhi – In a landmark move to strengthen India’s position in the global space economy, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved a dedicated Rs.1000 crore Venture Capital Fund for the space sector. This fund, initiated under the aegis of IN-SPACe, is designed to accelerate growth and innovation within India’s space ecosystem.
The fund, with a planned deployment period of up to five years from its inception, is structured to allocate between Rs.150-250 crore annually, contingent upon available investment opportunities.
This strategic fund aims to invest Rs.10-Rs.60 crore in space startups depending on their growth stage, with Rs.10-Rs.30 crore for early growth and Rs.30-Rs.60 crore for late-stage companies, thereby supporting an estimated 40 startups.
The Venture Capital Fund seeks to:
- Infuse Capital: To attract further investment and instill confidence in private investors.
- Retain Companies in India: Prevent Indian space companies from relocating abroad.
- Grow the Space Economy: Support India’s goal of expanding its space economy five-fold over the next decade.
- Advance Space Technology: Strengthen innovation and enhance competitiveness.
- Support Atmanirbhar Bharat: Encourage self-reliance in space technology.
- Create a Dynamic Innovation Ecosystem: Facilitate a supportive environment for startups.
- Drive Economic Growth and Employment: Generate direct and indirect job opportunities.
The proposed fund intends to support startups across the entire space supply chain, from upstream to downstream. Each investment could generate hundreds of direct jobs in engineering, software development, data analysis, and manufacturing, along with thousands of indirect roles in logistics and professional services. This fund not only aims to generate employment but also to foster a skilled workforce, driving innovation and strengthening India’s competitive edge globally.
By nurturing a vibrant space startup ecosystem, the Government of India envisions positioning the country as a global leader in space innovation, economic growth, and sustainable development. This fund underscores India’s commitment to advancing its space capabilities while fostering a thriving environment for private sector participation.
