Union Budget 2024: Space sector to get Rs 1,000 crore venture capital fund

In a major boost to the space industry Finance Minister Nirmala Sitharaman announced on Tuesday that a venture capital VC fund of Rs 1000 crore will be set up to promote space technologySeveral stakeholders including the Indian Space Association ISpA as well as the heads of the Indian National Space Promotion and Authorisation Centre INSPACe and Pixxel Space said the announcement would fuel growth and development in the sectorldquoWith our continued emphasis on expanding the space economy by five times in the next 10 years a venture capital fund of Rs 1000 crore will be set uprdquo Sitharaman said in the Lok Sabha while presenting the Union Budget 2024INSPACe chairperson Pawan Goenka said the setting up of a focused venture fund of Rs 1000 crore in the Union Budget 2024 will give a major boost to new entrepreneurs and nongovernment entities NGEs in the sector He added that INSPACe is looking forward to supporting the growth of the space economy and nurturing an enabling ecosystem for NGEsldquoThe fund announced in the Union Budget 2024 along with the existing policies for the space sector will fuel technological innovation and create a fertile ground for NGEs to thriverdquo Goenka told PTIAwais Ahmed the Chief Executive Officer of Bengalurubased startup Pixxel Space said the VC will provide crucial financial support to innovative startups and companies and enable them to scale their technologies towards contributing to Indias space ambitionsldquoSuch a significant investment underscores the governments commitment to fostering a robust and dynamic space ecosystemrdquo Ahmed told PTIChennaibased startup Agnikul Cosmos added that the VC fund will enable larger players to emerge out of Indias startup ecosystemldquoWonderful news for all of us in the sector This also shows that the government is continuing to strongly back its vision of making India have a larger chunk of the global space economyrdquo said Agnikul Cosmos CEO Srinath RavichandranThe VC fund addresses a crucial funding gap in nascent space research and development and will be transformative in building sovereign capabilities fostering local IP creation and driving innovation stated KaleidEO COO Arpan SahooAccording to the Indian Space Association the move demonstrates the governments commitment to the sectorldquoThe announcement of a Rs 1000 crore VC fund is a step forward addressing the funding challenges faced by these nascent ventures in this capitalintensive domainrdquo ISpA Director General Lt Gen AK Bhatt Retd saidExperts also believe that the establishment of 12 industrial parks across India will help provide a substantial boost to the space and satellite manufacturing industry which has been demanding the creation of space parksldquoThese measures are pivotal for the growth and development of Indias space ecosystemrdquo Bhatt saidThe announcement of the Rs 1000 crore venture capital fund in the Union Budget 2024 for the space sector is a commendable initiative that will significantly foster innovation and growth within this critical industry Every rupee invested promises substantial returns as the space sector holds immense potential for contributing to GDP growth and enhancing national infrastructurerdquo said Anil Prakash director general of the Satcom Industry AssociationIndiaWith PTI inputs