FM Commits ₹1,000 Crore to Boost Space Startups

23 Jul 2024 , 12:46 PM

The Union government would establish a ₹1,000 Crore venture capital fund to engage in the space economy, according to finance minister Nirmala Sitharaman’s budget speech.

The minister also stated that the Indian space economy will grow by five times over the next decade. She did not specify whose company will set up the fund or how the cash would be invested.

According to ET, Srinath Ravichandran, cofounder of space-tech startup Agnikul, called the decision “wonderful news” and said it would promote more participation from private enterprises and help the creation of larger participants in the space startup ecosystem.

Agnikul Cosmos, Chennai, created the first private launchpad and mission control centre on the ISRO campus at Satish Dhawan Space Centre, Sriharikota, on November 25, 2022, according to the Centre’s Economic Survey, released on Monday.

According to Pawan K Goenka, chairman of the country’s private space sector regulator IN-SPACe, the fund will also make it easier for companies to obtain equity financing when they reach the venture capital stage.

According to IN-SPACe, the Indian space economy has the potential to grow to $44 billion in the next ten years from $8.4 billion today, increasing India’s contribution of the global space economy by fourfold from 2% to 8%.

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