India Boosts Space Sector with Rs 1000 Crore Venture Capital Fund

Prime Minister Narendra Modi announced a Rs 1000 crore Venture Capital Fund for the space sector, aiming to boost innovation and private participation. The fund, managed by IN-SPACe, is expected to elevate India's space economy, valued at $8.4 billion, to a projected $44 billion by 2033.

In a major move to enhance India's space ambitions, Prime Minister Narendra Modi expressed satisfaction over the cabinet's decision to create a substantial Venture Capital Fund targeting the space sector. He hailed it as 'excellent news' that will significantly benefit the nation's young innovators and accelerate the space program's momentum.

The Union Cabinet has sanctioned a Rs 1000 crore fund under the supervision of the Indian National Space Promotion and Authorisation Center (IN-SPACe). This initiative aligns with the government's 2020 space reforms aimed at encouraging private sector involvement. The Information and Broadcasting Minister, Ashwani Vaishnaw, indicated that the fund would be deployed over a span of five years.

The availability of Rs 150-250 crore annually aims to meet the high demand for risk capital in the burgeoning sector where traditional financial institutions remain cautious. The space economy, currently valued at $8.4 billion, is projected to soar to $44 billion within a decade, bolstered by the emergence of approximately 250 startups.

The government-backed fund aims to inspire investor confidence and draw private capital, reflecting the government's commitment to space reforms. Designated as an Alternative Investment Fund under SEBI, it will provide crucial early-stage equity to startups, facilitating their growth and further private investment.

(With inputs from agencies.)