Cabinet clears Rs Rs 1,000-crore fund to support space start-ups over 5 years

Start-ups will receive between Rs 10 to Rs 60 crore support from the fund based on its stage of development, growth trajectory, and its potential impact on national space capabilities.

The step is in line with the government’s vision of India capturing a bigger chunk of the global space market. The Indian space sector is currently valued at USD 8.4 billion and is expected to grow to USD 44 billion with the government’s support. There are already 250 space start-ups in the country since the space sector was liberalised in 2020.

This move — which was announced in this year’s budget — will also generate thousands of direct and indirect jobs, develop new manufacturing capability and supply chains, and create trained space professionals. The fund is expected to drive innovation in satellite technology, launch vehicle technology, as well as space applications. It will also advance space reforms.

“This is a big decision that will bring us at par with the ecosystem set-up by other big countries,” said Vaishnaw.

Around Rs 150 crore from the fund is likely to be deployed in its first year (2025-26), `250 crore for next three years, and `100 crore in its last year of operation, according to a government statement. The fund will be managed by professional managers and follow the structures of an alternative investment fund as per SEBI, the minister said.

“Along with the policy initiatives, one of the foremost requirements of the industry is financial support at this moment. We believe that this fund will not only be a key enabler for growth of the Indian space start-up ecosystem but will also inspire investors to seriously look at this sector as an investment and come forward to become a part of the Indian space start-up story,” said Lt Gen A K Bhatt (retd), DG, Indian Space Association.