India Allocates ₹1,000 Crore to Boost Space Startups
- The Indian government has announced a ₹1,000 crore venture capital fund to support spacetech startups, managed by SIDBI Venture Capital Limited (SVCL).
- The fund will be allocated over five years, starting with ₹150 crore in 2025-26, followed by ₹250 crore annually for three years, and ₹100 crore in 2029-30.
In a significant move to support the country's growing spacetech ecosystem, the Indian government has announced a ₹1,000 crore funding scheme for startups in the space sector.
Union Minister Jitendra Singh revealed that the initiative aims to enhance private sector participation and innovation in India's space industry.
Venture Capital Fund Under IN-SPACe
The Union Cabinet had approved the establishment of this ₹1,000 crore venture capital fund in October last year under the aegis of the Indian National Space Promotion and Authorization Center (IN-SPACe).
The fund will be managed by SIDBI Venture Capital Limited (SVCL), a wholly owned subsidiary of the Small Industries Development Bank of India (SIDBI).
SVCL, which has extensive experience in managing venture capital funds across various sectors, will oversee the allocation of funds to promising space startups. The goal is to make Indian space enterprises globally competitive while addressing the crucial challenge of risk capital.
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According to reports, the funds will be distributed over five years, beginning with Rs 150 crore in the 2025-26 financial year. This will be followed by annual allocations of ₹250 crore each over the next three years, with the final installment of ₹100 crore in 2029-30.
Growing Budget for Space Initiatives
Highlighting the government's commitment to the space sector, Jitendra Singh pointed out that the Department of Space’s budget has increased by 138%, from ₹5,615 crore to ₹13,416 crore. This significant rise reflects the broader investment pool that has expanded with the opening up of India’s space sector.
This funding initiative aligns with the Indian Space Policy of April 2023, which focuses on research and development, private sector participation, and leveraging public sector infrastructure to advance the nation’s space economy.
Edited by Harshajit Sarmah
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