The Union Cabinet has approved the setting up of a Rs 1000 crore venture capital fund dedicated to the space sector, under the aegis of the Indian National Space Promotion and Authorization Centre (IN-SPACe). The deployment period of the proposed Rs 1,000 crore VC fund is planned to be up to five years from the actual date of the start of the fund operations.
Earlier IN-SPACe proposed a Rs 1000 crore venture capital fund to support the growth of India's space, economy, currently valued at USD 8.4 billion, with a target to reach USD 44 billion by 2033. The proposed government-backed fund will boost investor confidence, attract private capital, and signal the government's commitment to advancing space reforms. It will serve as an Alternative Investment Fund under Security Exchange Board of India (SEBI) regulations, providing early-stage equity to startups and enabling them to scale for further private equity investments.
As per the Press Information Bureau (PIB), the average deployment amount could be Rs 150-250 crore per year, depending on the investment opportunities and fund requirements. The range of investment is proposed to be Rs 10 crore to -Rs 60 crore, depending upon the stage of the company, its growth trajectory, and its potential impact on national space capabilities.
Early growth stage startups might be ranged in the category of 10 to 30 crore while late growth stage startups under 30 to 60 crore category. Based on the investment range, the fund is expected to support approximately 40 startups, as per PIB.
The fund is strategically designed to advance India's space sector, aligning with national priorities and fostering innovation and economic growth that includes key initiatives such as capital infusion, retaining companies in India, growing the space economy, accelerating space technology development, boosting global competitiveness, supporting Atmanirbhar Bharat, creating a vibrant innovation ecosystem, driving economic growth and job creation and ensuring long-term sustainability.
The proposed fund is expected to boost employment in the Indian space sector by supporting startups across the entire space supply chain—upstream, midstream, and downstream.
