Budget 2024: FM announces Rs 1,000 crore fund to back spacetech startups
July 23, 2024
Synopsis
The minister added that the Indian space economy will be expanded by five times over the next decade. She did not elaborate on which entity will set up the fund or how the funds will be invested.
The Union government will set up a Rs 1,000 crore venture capital fund for investments into the space economy, finance minister Nirmala Sitharaman said in her budget speech.
The minister added that the Indian space economy will be expanded by five times over the next decade. She did not elaborate on which entity will set up the fund or how the funds will be invested.
Calling the announcement a “wonderful news”, Srinath Ravichandran, cofounder of space-tech startup Agnikul said the move would encourage more participation from private firms and help the emergence of larger players in the space startup ecosystem.
The first private launchpad and mission control centre was established by Agnikul Cosmos, Chennai, in ISRO campus at Satish Dhawan Space Centre, Sriharikota on November 25, 2022, the Economic Survey released by the Centre on Monday had noted.
The fund would also help startups get equity investments more easily when they’re at a venture capital stage, said Pawan K Goenka, chairman of the country’s private space sector regulator IN-SPACe.
Vishesh Rajaram, Managing Partner, Speciale Invest, told ET, "We strongly believe that a Rs. 1000 crores fund for space startups and space economy will catalyse India's dominance in the global space market. We believe the trust and focus from the Government of India combined with the FDI policy announced earlier this year will lead to more investment participation in the sector from India and internationally."
Specialè Invest, is an early investor. Its portfolio includes investments in launch vehicles (Agnikul Cosmos), satellite manufacturing and earth observation (GalaxEye Space, Kawa Space), communication (Astrogate Labs), and in-orbit economy (InspeCity).
The Indian space economy has the potential to reach $44 billion in the next 10 years from the current $8.4 billion as per IN-SPACe, expanding India’s share of the global space economy by four times from current 2% to 8%.
[The Economic Times]
