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

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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.

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.

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.