News Brief
India To Support Around 40 Space Startups With Rs 1,000 Crore Venture Fund—What You Need To Know
The GSLV MKIII rocket (Representative Image) (Pic via ISRO website)
The Union Cabinet on Thursday (24 October) approved setting up of Rs 1,000 crore venture fund to support 35 to 40 space start-ups over a period of five years, under aegis of Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The government expects that the proposed fund will "boost investor confidence, attract private capital", and signal its commitment to advancing space reforms.
“The focus will be on start-ups that have developed a basic proof of concept that needs to be taken forward to the commercialisation stage. Early life of start-ups is the most critical. If they receive support in early life, then the probability of success goes up,” said Union Information and Broadcasting Minister Ashwini Vaishnaw, Indian Express reported.
Start-ups will receive between Rs 10 to Rs 60 crore support from the fund based on its stage of development, growth trajectory, and its potential impact on national space capabilities.
Around Rs 150 crore from the fund is likely to be deployed in its first year (2025-26), Rs 250 crore for next three years, and Rs 100 crore in its last year of operation, according to a government statement.
According to the minister, the fund will be managed by professional managers and follow the structures of an alternative investment fund.
The fund aims to address the critical need for risk capital, as traditional lenders are hesitant to fund startups in this high-tech sector.
The Indian space sector is currently valued at $8.4 billion and is expected to grow to $44 billion with the government’s support.
There are already 250 space start-ups in the country since the space sector was liberalised in 2020.
With nearly 250 space startups emerging across the value chain, timely financial support is crucial to ensure their growth and prevent talent loss overseas, the government statement said.
"The proposed fund is expected to boost employment in the Indian space sector by supporting startups across the entire space supply chain—upstream, midstream, and downstream," the statement said.
"It will help businesses scale, invest in R&D, and expand their workforce. Each investment could generate hundreds of direct jobs in fields like engineering, software development, data analysis, and manufacturing, along with thousands of indirect jobs in supply chains, logistics, and professional services," it added.
By fostering a strong startup ecosystem, the fund will not only create jobs but also develop a skilled workforce, driving innovation and enhancing India's global competitiveness in the space market, according to the statement.
