In a landmark announcement during the Union Budget 2024-25, Union Finance Minister Nirmala Sitharaman revealed a transformative initiative for India’s space sector. The government plans to establish a Rs 1,000 crore venture capital fund aimed at expanding the nation’s space economy, with a goal to increase its size fivefold over the next decade.
This new fund is expected to attract substantial private sector investment, propelling growth within the space industry. The initiative is part of a broader strategy to enhance India’s global position in space exploration.
Siddharth Mody, Partner at JSA Advocates and Solicitors, lauded the move, emphasizing its potential to accelerate industry growth. “With the space economy projected to expand from USD 8.4 billion to USD 44 billion by 2033, this venture capital fund is a strategic boost,” Mody said. He added that it would support early-stage space tech companies, contributing to India’s goal of capturing a 10% share of the global space economy by 2030.
Sanjay Kumar, CEO of Geospatial World, highlighted the crucial role of geospatial technology in this development. “The enhanced role of geospatial technology will be vital in India’s path to becoming a global innovation hub,” Kumar noted.
Saurabh Rai, CEO of Arahas, also emphasized the transformative potential of this funding. “The venture capital fund opens new opportunities for collaboration and innovation, reinforcing India’s growing presence in space exploration.”
By providing essential capital and fostering a supportive environment, the new fund aims to accelerate advancements in satellite manufacturing, launch vehicle production, and satellite services.
