Budget 2024: To Set Up Rs 1,000 Crore Venture Capital Fund For Space Sector

The government will set up a venture capital fund worth Rs 1,000 crore for the country's burgeoning space sector.

The government will look to invest about Rs 1,000 crore in the space technology sector, which has seen startups like Pixxel, Agnikul Cosmos, Bellatrix and Skyroot Aerospace, Finance Minister Nirmala Sitharaman said while presenting the Union Budget for fiscal 2024-2025.

"Wonderful news for all of us in the sector. This will help larger players emerge out of India’s space startup ecosystem. This also shows that the government is continuing to strongly back its vision of making India have a larger chunk of the global space economy," said Srinath Ravichandran, co-founder and chief executive officer at Agnikul Cosmos.

"Additionally, the establishment of 12 industrial parks across India will provide a substantial boost to the space and satellite manufacturing industry, which has long called for the creation of space parks. These measures are pivotal for the growth and development of India's space ecosystem," said Lt. Gen. AK Bhatt (Retd.), Director General, Indian Space Association, a multi-agency industry body.

In recent times, the government has focused on space as a sector and opened the field to private investments. Interestingly, the charge for the Department of Space also lies directly with the Prime Minister of India.

The government has also empowered the Indian National Space Promotion and Authorisation Centre, or IN-SPACe, as a single-window autonomous government agency to promote, permit, and oversee private sector space-based activities.

The IN-SPACe is headed by Pawan Goenka, a retired managing director of Mahindra & Mahindra Ltd.