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In her Budget speech on Tuesday, Union Finance Minister Nirmala Sitharaman declared the establishment of a Rs 1,000-crore venture capital (VC) fund with the aim of enhancing India's expanding space industry.
The decision emphasizes the government's dedication to promoting the development of the Indian space industry.
In 2021, the government granted private entities access to the space industry. The sector was also liberalized by the implementation of the Indian Space Policy 2023, which grants private firms the ability to conduct all activities from start to finish. Additionally, it allows for 100% foreign direct investment (FDI) to reduce obstacles to entrance.
India occupies a prominent position in the global space economy because of its innovative and cost-effective solutions. According to a report by ISpA-E&Y, the country's space sector represented around 2.1% of the worldwide space economy in 2020.
Read also - Budget 2024: Nirmala Sitharaman Boosts India’s Startup Ecosystem
IN-SPACe predicts that the Indian space economy has the capacity to grow to $44 billion in the next decade, up from its current value of $8.4 billion. This is expected to increase the country's portion in the worldwide space economy by four times, from the current 2% to 8%.
The expansion of the space industry will be propelled by the involvement of startups such as Agnikul Cosmos, Skyroot Aerospace, Pixxel, Dhruva Space, and Bellatrix Aerospace, who will contribute to the advancement of space launches and downstream technology.
Vishesh Rajaram, Managing Partner of Speciale Invest, said: “We strongly believe that a Rs 1,000-crore fund for space startups and the space economy will catalyze India’s dominance in the global space market!”
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