Union Finance Minister Nirmala Sitharaman said on Tuesday that the government will establish a Rs 1,000 crore venture capital (VC) fund with the goal of propelling the Indian space industry into new heights.
She announced the creation of a Rs 1,000 crore venture capital fund by the Union government to support the space economy while presenting the nation’s seventh budget.
“We strongly believe that an INR 1000 crore fund for space startups and space economy will catalyze India’s dominance in the global space market,” stated Vishesh Rajaram, Managing Partner of Speciale Invest, in response to the news.
“We believe the trust and focus from the government combined with the FDI policy announced earlier this year will lead to more investment participation in the sector from India and internationally,” Rajaram said.
Since 2018, Speciale Invest has been among the most active investors in this space, having been an early adopter. Agnikul Comos, a manufacturer of rockets, Galaxeye Space, Kawa Space, InspeCity, an in-orbit economy, and communication company Astrogate Labs are among the firms it has invested in.
Lt. Gen. (Retd) AK Bhatt, Director General of the Indian Space Association (ISpA), welcomed the decision made by the Union Finance Minister, saying: “The Union Budget’s vision to grow India’s space economy by fivefold in the next decade demonstrates the government’s strong commitment to this sector.”
Additionally, he said that the construction of 12 industrial parks around India will significantly support the space and satellite manufacturing sector, which has long advocated for the establishment of space parks.
According to him, these actions are essential to the expansion and improvement of India’s space ecosystem.
