New Delhi
The Union Cabinet, chaired by Prime Minister Narendra Modi on Thursday, has approved Rs 1,000 crore venture capital (VC) fund aimed at propelling India’s burgeoning space sector. This fund, managed under IN-SPACe, is expected to enhance employment opportunities by supporting startups throughout the space supply chain.
The deployment of the fund is planned over five years, with annual investments ranging from Rs 150 to 250 crore, based on available opportunities. Investments will vary between Rs 10 to 60 crore depending on the company’s growth stage, with potential equity investments of Rs 10 to 30 crore for growth-stage companies and Rs 30 to 60 crore for those in late growth stages. This is anticipated to support around 40 startups.
This initiative aligns with the government’s 2020 space sector reforms, which established IN-SPACe to facilitate private sector participation. The space economy is currently valued at $8.4 billion, with a target of reaching $44 billion by 2033. The government aims to prevent talent loss to overseas markets by providing timely financial support to emerging startups.
The VC fund is expected to boost investor confidence and attract private capital, thereby signaling the government’s commitment to advancing space reforms and fostering a vibrant innovation ecosystem in India.
