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Union Cabinet Approves ₹1,000 Crore Venture Capital Fund for Space Sector

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a ₹1,000 crore Venture Capital Fund dedicated to the space sector under the Indian National Space Promotion and Authorization Center (IN-SPACe). This initiative aims to enhance India’s space capabilities and foster innovation within the burgeoning space economy.

The proposed fund is designed to be operational over five years, with an estimated average deployment of ₹150-250 crore annually, based on investment opportunities. The financial breakdown for the fund’s deployment is as follows:

  • 2025-26: ₹150 crore
  • 2026-27: ₹250 crore
  • 2027-28: ₹250 crore
  • 2028-29: ₹250 crore
  • 2029-30: ₹100 crore

The fund is expected to provide investments ranging from ₹10 crore to ₹60 crore, contingent on the company’s growth stage. It is anticipated that approximately 40 startups will benefit from this financial support.

Key objectives of the fund include:

  • Capital Infusion: To attract additional funding for further development and instill confidence in private investors.
  • Retention of Space Companies: To counteract the trend of Indian companies relocating abroad.
  • Growth of the Space Economy: Aiming for a five-fold expansion in the Indian space economy over the next decade.
  • Innovation and Job Creation: Supporting startups across the space supply chain to create thousands of jobs in engineering, software development, and manufacturing.

The fund aligns with the Indian government’s broader vision of fostering an Atmanirbhar Bharat (self-reliant India) and is a crucial part of the 2020 space sector reforms initiated to promote private sector participation in space activities.

As India seeks to strengthen its position in the global space market, this initiative is expected to enhance the country’s competitiveness and support the ambitious goal of growing the space economy from its current valuation of $8.4 billion to $44 billion by 2033.

Union Cabinet Approves ₹1,000 Crore Venture Capital Fund for Space Sector

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