India to Establish ₹1,000 Crore Fund to Boost Space Technology
Finance Minister Nirmala Sitharaman announced in her Budget speech on Tuesday that the government will establish a ₹1,000 crore venture capital fund to promote space technology. This initiative aims to expand India’s space economy five-fold over the next ten years through increased private sector participation.
Ambitious Growth Targets
India’s space economy currently stands at around $8 billion. The government targets an ambitious growth, aiming to elevate this to $44 billion by 2033. Reforms initiated in 2020 have significantly increased private sector involvement in the space sector.
IN-SPACe: Facilitating Growth
The Indian National Space Promotion and Authorisation Centre (IN-SPACe) was established in June 2022 as a single-window agency to promote and authorise investments. IN-SPACe has played a crucial role in supporting approximately 300 startups by providing authorisation, guidance, facility support, consultancy, technology transfer, and facility usage.
Pawan Kumar Chandana, CEO of Skyroot Aerospace, highlighted the importance of the new venture capital fund. “The ₹1,000 crore venture capital fund is a significant booster for India’s growing space startup ecosystem. This level of support underscores the government’s commitment to developing private space programs and capabilities,” he said.
Success Stories in Indian Space Tech
Skyroot Aerospace, a leading startup in the Indian space sector, successfully developed and operated the launch vehicle Vikram-1 in November 2022, marking the first private player to achieve such a milestone.
“This initiative will help larger players emerge from India’s space startup ecosystem. It shows the government’s strong backing of its vision to increase India’s share in the global space economy,” said Srinath Ravichandran, CEO of Agnikul Cosmos.
Other notable private companies, including PixxelSpace, Digantara, Dhruva Space, Azista BST Aerospace, and Tata Advanced Systems, have developed satellites and operational payloads for space missions. In November 2022, Agnikul Cosmos established the first private launchpad and mission control centre in Chennai.
Government and Private Sector Collaboration
A consortium of state-owned Hindustan Aeronautics Ltd and L&T consortia has been selected to build five Polar Satellite Launch Vehicles, showcasing the collaboration between government and private sectors.
India currently has 55 active space assets, including 18 communication satellites, nine navigation satellites, five scientific satellites, three meteorological satellites, and 20 Earth observation satellites.
