Union Budget 2024-25 proposes to set up ₹1000 crore venture capital fund for space economy ‘five-fold in next decade’ | Current Affairs | Vision IAS
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    Union Budget 2024-25 proposes to set up ₹1000 crore venture capital fund for space economy ‘five-fold in next decade’

    Posted 26 Jul 2024

    2 min read

    Proposed Venture Capital Fund envisions to expand the space economy by 5 times in the next 10 years.

    • Venture Capital Fund invests in early-age startups with long term growth potential.

    Indian Space Economy 

    • Present Indian space economy values around ₹6,700 crore and with a 2% share in global space economy in 2021.  
      • This share is expected to rise to 8% by 2030 and further to 15% by 2047.
    • Space Start-ups have increased to nearly 200 in 2024 from 1 in 2022. 
    • Investment in Indian Space Start-Ups increased to $124.7 Million in 2023.
    • Implementation of Indian Space Policy 2023 is expected to build $44 billion Indian space economy.

    Key initiatives for growth of Space Economy

    • Indian National Space Promotion and Authorisation Centre (IN-SPACe) – a single window nodal agency to promote and authorize space activities.  
    • Space sector reform 2020 which opened the sector for private sector participation. 
    • Indian Space Policy and 100% FDI in some sub-sectors of space.
    • Rising private sector participation with startups such as Skyroot Aerospace (Vikram-S, Prarambh mission), Agnikul Cosmos (Dhanush - first private launchpad) etc.
    • Transfer of technology to private players by ISRO, NSIL/IN-SPACe. 
    • International collaborations such as NISAR programme and Artemis Accords. 

    Challenges to Indian Space Economy

    • Increase in space debris pose significant challenges in space operations and require technological sophistication to avoid collisions.
    • Growing militarisation of space.
    • Disruption risks in global technology supply chains due to geopolitical tensions and concentration of resources
    • Absence of substantial domestic investor pool interested in space ventures. 
    • Tags :
    • Space
    • Indian Space Policy
    • Space Economy
    • SPACE
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