The cabinet has given approval for a Rs 1,000 crore venture capital (VC) fund to blooster growth of space startups by providing crucial early-stage funding. 

In its statement, the government said, “The deployment period of the proposed Rs 1,000 crore VC fund is planned to be up to five years from the actual date of start of the fund operations.”

The Indian National Space Promotion and Authorisation Centre (IN-SPACe) is set to roll out a venture capital fund with an annual investment target between Rs 150-250 crore. This fund aims to support early-stage space startups with a focus on innovative proof-of-concept developments and commercialisation-ready technologies. Investments will typically range from Rs 10-60 crore, tailored to the growth stage of each company.

Information and Broadcasting Minister Ashwini Vaishnaw highlighted the fund’s role in fostering advancements across satellite technology, launch vehicles, and space-based applications, stating, “The VC fund is expected to drive innovation in satellite technology, launch vehicles, and space applications.” 

This strategic initiative is anticipated to invigorate India’s private space sector and catalyse cutting-edge developments that could position India as a major player in the global space industry.

The newly proposed venture capital fund from the Indian National Space Promotion and Authorisation Centre (IN-SPACe) is set to accelerate growth in India’s space sector. Private investors may have the opportunity to co-invest, generating a multiplier effect to further boost resources. With an overarching goal of supporting around 40 startups, this initiative will inject capital to retain talent, grow the space economy, and fast-track technological advancements in the field, all while contributing to the Atmanirbhar Bharat mission.

“The proposed fund will position India as one of the leading space economies,” noted the statement, underscoring the ambition behind this initiative. 

The professionally managed fund is expected to stimulate employment throughout the space supply chain, from upstream research and engineering to downstream applications like software development, data analysis, and manufacturing. This effort could create hundreds of direct jobs and thousands of indirect roles in sectors such as logistics and professional services.

Aiming to expand the national space economy from $8.4 billion to $44 billion by 2033, the fund is designed to mitigate brain drain and empower early-stage space ventures, positioning India as a frontrunner in the global space technology landscape.

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