Budget 2024: Govt Sets Aside Rs 1,000 Crore to Help Space Start-Ups Aim for the Stars

Finance Minister Nirmala Sitharaman introduced a Rs 1,000 crore venture capital fund for India’s space technology ventures, in a major highlight of the union budget 2024-25. This fund comes as the government’s broader strategy to position India as a leading player in the global space industry.India’s space economy is around $8 billion now and the government aims to take it to $44 billion by 2033.It aligns with the growing importance of space technology and its potential to significantly impact national and global economies. Industry stakeholders believe the fund will attract substantial private investments, encourage entrepreneurial ventures, and bolster India’s position in the competitive space industry.The announcement came after the Economic Survey 2023-24 noted that the space sector has seen remarkable progress in the sector of rockets, satellites and spacecraft used for space exploration, and ground infrastructure.”Presently, India has 55 active space assets which include 18 communication satellites, nine navigation satellites, five scientific satellites, three Meteorological Satellites, and 20 Earth Observation satellites,” the survey said.Lt. Gen. AK Bhatt (Retd.), director general, Indian Space Association (ISpA) stated that the sector was advocating for increased financial incentives to support the burgeoning space startups in the country. “The announcement of a ₹1000 crore VC fund is a step forward, addressing the funding challenges faced by these nascent ventures in this capital-intensive domain. Additionally, the proposal for establishment of 12 industrial parks across India we hope will include the space sector as this will provide a substantial boost to the space and satellite manufacturing industry, which has long called for the creation of space parks,” he added.However, Chirag Gupta, managing partner of 8X Ventures, states that despite the fact that Rs 1,000 crore VC fund is a positive signal of confidence, but more support, beyond finances, is needed. “The space sector is capital and resource-intensive and holds growth potential. As India advances towards more ambitious projects like Gaganyaan and a dedicated space station, more funding and technical, academic, and corporate support are needed to drive this growth and foster innovation,” he said.

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