The Union Cabinet has approved an ₹1,000 crore venture capital fund to support India’s growing space technology startups, as announced in the Union Budget 2024-25. Managed by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), the fund aims to drive innovation in satellite technology, launch vehicles, and space applications.
The initiative is designed to retain talent within India while fostering a vibrant innovation ecosystem. The fund will invest between ₹10 crore and ₹60 crore in startups, depending on their stage of growth and potential to impact India’s space capabilities. It is expected to support around 40 startups over the next five years.
The fund is set to infuse capital into startups, retain companies within India, expand the space economy, and accelerate space technology development. It will also boost global competitiveness and support the Atmanirbhar Bharat initiative, creating jobs and stimulating economic growth, the government said. This initiative aligns with the government’s vision to expand India’s space economy from ₹8.4 billion to ₹44 billion by 2033.
With this fund, the government expects to “generate hundreds of direct jobs in areas such as engineering, software development, data analysis, and manufacturing, alongside thousands of indirect jobs in logistics and professional services.”
It will create opportunities across the entire space supply chain, helping to develop a skilled workforce and strengthen India’s global position in the space market, the announcement noted.
IN-SPACe was established in 2020 to promote private sector participation in space activities. With nearly 250 space startups emerging from India across the value chain, the fund aims to address the critical need for risk capital, ensuring the growth of the indigenous space industry and preventing talent loss abroad.
The government-backed initiative aims to attract private capital and accelerate space technology development, positioning India as a leader in global space reforms.