New Delhi || 24-10-2024 The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved setting up of Rs.1000 crore Venture Capital Fund dedicated to space sector, under aegis of IN-SPACe.
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.
It will help businesses scale, invest in R&D, and expand their workforce. Each investment could generate hundreds of direct jobs in fields like engineering, software development, data analysis, and manufacturing, along with thousands of indirect jobs in supply chains, logistics, and professional services.
By fostering a strong startup ecosystem, the fund will not only create jobs but also develop a skilled workforce, driving innovation and enhancing India’s global competitiveness in the space market.
The Government of India, as part of its 2020 space sector reforms, established IN-SPACe to promote and oversee private sector participation in space activities.
IN-SPACe has proposed a Rs.1000 crore Venture Capital Fund to support the growth of India’s space, economy, currently valued at S8.4 billion, with a target to reach $44 billion by 2033.
The fund aims to address the critical need for risk capital, as traditional lenders are hesitant to fund startups in this high-tech sector.
With nearly 250 space startups emerging across the value chain, timely financial support is crucial to ensure their growth and prevent talent loss overseas. The proposed government-backed fund will boost investor confidence, attract private capital, and signal the government’s commitment to advancing space reforms.
The fund will serve as an Alternative Investment Fund under SEBI regulations, providing early-stage equity to startups and enabling them to scale for further private equity investments.
