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Finance Minister Nirmala Sitharaman has rolled out a Rs 1,000 crore venture capital fund aimed at energising the nation's burgeoning space technology startups. This announcement, made during her Budget 2024-25 speech, forms part of a broader Rs 1 lakh crore financing initiative designed to spur private sector innovation across various industries.
The allocation of this fund is expected to significantly boost private sector-driven research, innovation, and commercial development in space technology. While specifics on fund management and investment strategies remain unclear, the initiative has already been praised as a major positive step for India's space economy.
Industry leaders have responded enthusiastically. Ninad Karpe, Founder and Partner, 100X.VC shares, "Angel Tax abolished! This is one of the boldest moves made by the Finance Minister. In addition, the space economy will get a boost with a VC fund of Rs 1000 crore. Overall, it is a balance budget with a broad brush covering thrust on employment, skilling, infrastructure. It will greatly boost economic activity and will aid in job creation”
Rahul Garg, Founder and CEO, Mogilx says, "The removal of angel tax is a welcome move for India's startup ecosystem. This, coupled with the establishment of a Rs 1,000 crore VC fund for the space economy, will foster innovation. The budget’s focus on manufacturing, with the introduction of plug-and-play industrial parks, is progressive."
The Indian space economy, currently valued at USD 8.4 billion, is projected to expand to USD 44 billion over the next decade. With 55 active space assets and over 300 entities engaging in space-related activities, India's space sector is on a trajectory towards becoming a global player. The new fund aims to support over 180 government-recognised space technology startups, aligning with the Centre's vision to quadruple India's share of the global space economy and establish a significant presence in the commercial space arena.
Specialè Invest, is an early-stage and active investor in this domain since 2018. Its portfolio includes investments in launch vehicles (Agnikul Comos), satellite manufacturing & earth observation (Galaxeye Space, Kawa Space), communication (Astrogate Labs), and in-orbit economy (InspeCity).
Vishesh Rajaram, Managing Partner,Speciale Invest comments, "The Indian space economy has the potential to reach USD 44 billion in the next 10 years from the current USD 8.4 billion (Source: IN-SPACe), expanding India’s share of the global space economy by four times from current 2 per cent to 8 per cent. We strongly believe that an Rs 1000 Crore fund for space startups and space economy will catalyse India's dominance in the global space market."
He adds, "We believe the trust and focus from the GoI combined with the FDI policy announced earlier this year will lead to more investment participation in the sector from India and internationally."
