NEW DELHI: In a bid to elevate India's space sector, Union Finance Minister Nirmala Sitharaman announced on Tuesday that the government will set up a Rs.1,000 crore venture capital fund to support the space economy.
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"With our continued emphasis on expanding the space economy fivefold in the next 10 years, a venture capital of Rs.1,000 crore will be set up," Sitharaman stated in her Budget speech.
This fund aims to drive private sector-led research, innovation, and commercial development in space technology. It is part of a larger Rs.1 lakh crore financing pool designed to stimulate private sector innovation across various industries.
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Lt. Gen. (Retd) AK Bhatt, Director General of the Indian Space Association (ISpA), welcomed the proposal, saying, "The Budget's vision to grow India's space economy by fivefold in the next decade demonstrates the government's strong commitment to this sector." He added that establishing 12 industrial parks across India would significantly enhance the space and satellite manufacturing industry, which has long advocated for the creation of space parks.
These initiatives are vital for the growth and development of India's space ecosystem. The Budget represents a significant step toward realizing the vision of a developed and self-reliant India under the #ViksitBharat2047 initiative. The announcement of the Rs.1,000 crore Venture Capital fund is expected to boost the defense manufacturing ecosystem as well.
This move follows recent successes in India's space program, including the Chandrayaan-3 lunar mission and the rise of space tech startups. The Economic Survey 2023-24, presented the day before, highlighted that India currently operates 55 active space assets, including 18 communication satellites and 20 Earth observation satellites. The survey also noted that over 300 Indian entities have submitted 440 applications to the Indian National Space Promotion and Authorization Centre (IN-SPACe) for various space-related activities.
Furthermore, 51 MoUs and 34 joint project implementation plans have been signed with non-governmental entities to support space initiatives.
The announcement is anticipated to benefit more than 180 government-recognized space technology startups in India. It aligns with the government's strategy to expand the country's space economy and position India as a major player in the global commercial space market.
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