On Tuesday, India’s Finance Minister Nirmala Sitharaman announced the establishment of a ₹10 billion ($119 million) venture capital fund to support its space industry. This program is part of India’s ambition to gain a greater share of the global space market.
Earlier this year, Prime Minister Narendra Modi’s government permitted 100% foreign direct investment (FDI) in satellite system manufacture without previous government clearance and loosened limitations on launch vehicles.
“In our ongoing efforts to expand the space economy by five times over the next decade, a venture capital fund of ₹1,000 crore (10 billion rupees) will be established,” Sitharaman added.
India has been privatising space launches and aims to raise its share of the global launch business by fivefold. India presently accounts for approximately 2% of the worldwide space launch business, which is predicted to be worth $47.3 billion by 2032.
Private space industry have applauded the government’s proposal, seeing the fund as a driver for more investment in the area. According to A.K. Bhatt, Director General of the Indian Space Association, the launch of a ₹1,000 crore VC fund is a positive move towards tackling financial issues for new businesses in the capital-intensive industry.
