Sitharaman announces 1,000cr fund to support Indian spacetech startups
What's the story
Finance Minister Nirmala Sitharaman announced a ₹1,000 crore venture capital fund to boost India's space economy during her Budget 2024-25 speech on Tuesday. This fund is part of a larger ₹1 lakh crore financing pool aimed at encouraging private sector innovation across various industries. Sitharaman stated that the Indian space economy will expand by five times over the next decade.
Fund allocation
Details of space economy fund remain unclear
Despite the announcement, Sitharaman did not provide specifics on which entity will establish the fund or how the funds will be invested. The initiative is anticipated to stimulate private sector-driven research, innovation, and commercial development in space technology. The move has been hailed as "wonderful news" by Srinath Ravichandran, co-founder of spacetech startup Agnikul.
Industry reaction
Industry leaders express optimism over space fund
Pawan K Goenka, chairman of India's private space sector regulator IN-SPACe, stated that the fund would help startups secure equity investments more easily during their venture capital stage. Vishesh Rajaram, Managing Partner at Speciale Invest, expressed a strong belief that a ₹1,000 crore fund for space startups will catalyze India's dominance in the global space market.
Current status
India's space economy shows promising growth
The Economic Survey 2023-24 highlighted that India currently operates 55 active space assets, including 18 communication satellites and 20 Earth observation satellites. Over 300 Indian entities have submitted 440 applications to IN-SPACe for various space-related activities. Moreover, there have been 51 MoUs and 34 joint project implementation plans signed with non-governmental entities to support space initiatives.
Startup impact
Venture capital fund to benefit space technology startups
The venture capital fund is expected to benefit over 180 government-recognized space technology startups in India. This aligns with Centre's push to expand the country's space economy and establish India as a major player in the global commercial space market. According to IN-SPACe, the Indian space economy has the potential to reach $44 billion in the next 10 years from its current $8.4 billion, expanding India's share of the global space economy by four times to 8%.