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New Delhi, July 24: In a move set to propel India's burgeoning space industry, Finance Minister Nirmala Sitharaman announced the establishment of a Rs 1,000 crore venture capital fund during the Union Budget 2024-25.
This dedicated fund aims to stimulate innovation and growth in the space sector, which has seen renewed vigor following the success of the Chandrayaan-3 and Aditya L-1 missions last year.
Venture Capital Fund to Fuel Space Innovation
The venture capital fund is poised to provide crucial financial backing to startups and established entities engaged in various aspects of the space economy. The fund's establishment is seen as a testament to the government's confidence in India's capability to develop cost-effective and cutting-edge space technologies.Anil Joshi, managing partner at Unicorn India Ventures, lauded the initiative, stating, "This will certainly help space tech companies to look for much needed early stage capital to get started. This will certainly help mobilise over Rs 4000 crore, great move." He also emphasized the importance of a robust intellectual property regime to complement the fund and maximize the impact of research and development investments.
Indian Space Economy Set for Exponential Growth
The Indian space economy, currently valued at $8.4 billion, is projected to reach $44 billion by 2033, representing a five-fold increase. The private sector is expected to play a pivotal role in this growth trajectory, taking on responsibilities for satellite and launch vehicle manufacturing, as well as satellite services and ground systems.The government's vision entails a substantial shift towards private sector-led initiatives, with the aim of increasing India's share in the global space economy from 2% to 10% by 2030 and 15% by 2047.
The year 2023 witnessed a surge in investment in Indian space startups, reaching $124.7 million, reflecting growing confidence in the sector's potential.
Economic Survey Highlights Space Sector Growth
The Economic Survey 2023-24 revealed that India currently operates 55 active space assets, including communication, navigation, scientific, meteorological, and Earth Observation satellites. The survey also highlighted the increased participation of non-governmental entities in the space sector, with over 300 entities submitting applications to IN-SPACe and numerous MoUs and joint project plans signed.Startups and Private Ventures Driving Innovation
The number of space startups in India has exploded, reaching nearly 200 in 2024 compared to just one in 2022, driven by reforms in the sector. Private companies like PixxelSpace, Digantara, and Dhruva Space are developing satellites and payloads, while partnerships between Hindustan Aeronautics Ltd, Larsen & Toubro, and ISRO are focusing on launch vehicle production.With the establishment of a dedicated venture capital fund and a growing number of private players entering the space sector, India's space journey is set to accelerate. The government's emphasis on fostering innovation, expanding the private sector's role, and increasing India's share in the global space economy indicates a bright future for the country's space ambitions.
