The government has sanctioned a fund amounting to a substantial 10 billion Indian rupees or $119 million – expecting to support the country’s burgeoning space sector, with expectations that around 40 startups will benefit from this effort. Funding will range from 100 to 600 million rupees for each of the startups, depending on maturity level. Its key objectives include creating jobs; boosting space technology development; enhancing supply chains; and backing general research and development work.
This, India has undertaken as part of its overall strategy to boost its share in the global commercial space market which currently sits at a meager 2%, and has a target value by 2033 at $44 billion. The fund was first proposed in July 2023 and is going to be managed by the IN-SPACe or Indian National Space Promotion and Authorisation Centre. This will have a multiplier effect, the government hopes: it would attract other investments with this capital injection so that the sector grows.
India already has more than 250 space startups, and most of them look for the development of cost-effective services and technologies by sectors such as communication, agriculture, and commodities. The growth in private equity investments too, stood at an impressive $126 million in 2023, and interest in the country’s space capabilities is growing substantially.
