In a significant move to fuel India’s private space sector, the Union Cabinet has approved a dedicated Rs 1,000 crore Venture Capital Fund aimed at supporting innovative space tech startups across the country. This fund, expected to benefit around 40 startups, aligns with the government’s vision to strengthen India’s footprint in the global space industry and foster technological advancements that drive economic growth.
Announced by Finance Minister Nirmala Sitharaman in the 2024-25 Union Budget, the fund will be administered by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), which oversees private sector activities in the space domain. Over the next five years, the fund will be incrementally deployed, with an annual allocation of Rs 150-250 crore aimed at fostering early-stage to late-stage growth. For the fiscal year 2026, Rs 150 crore has been earmarked, and subsequent years will see an increase, with Rs 250 crore per year for three years, and Rs 100 crore for the final phase.
The fund’s structure is designed to provide startups with financing suited to their growth trajectory and developmental needs. Early-stage companies will receive investments ranging from Rs 10 crore to Rs 30 crore, while late-stage startups could see allocations between Rs 30 crore and Rs 60 crore. The financial backing aims to help these companies scale their operations, attracting additional investments and positioning India as a competitive hub in the global space sector.
Startups such as Agnikul Cosmos, Skyroot Aerospace, Bellatrix, GlaxEye, Dhruva, SatSure, Vesta Space, Digantara, and InspeCity are already making strides in the space tech ecosystem, many having secured venture capital and made notable advancements in fields ranging from satellite technology to launch vehicles. With this new fund, the Centre aims to create a conducive environment for growth, enabling these startups to contribute significantly to India’s space capabilities and scientific progress.
The Centre’s initiative reflects a growing commitment to boosting India’s private space industry, attracting talent and investment, and building an ecosystem that could position India as a leader in space technology and exploration on the global stage.
