NEW DELHI: The Union Budget 2024 has been met with widespread approval from the space industry, following Finance Minister Nirmala Sitharaman’s announcement to expand India’s space economy fivefold over the next decade.

Central to this vision is the establishment of a Rs 1000 crore venture capital fund aimed at fostering innovation and growth within the sector.

Lt. Gen. AK Bhatt (Retd.), Director General of the Indian Space Association (ISpA), praised the government’s commitment, stating, “The Union budget’s vision to grow India’s space economy by fivefold in the next decade demonstrates the government’s strong commitment to this sector. The announcement of a ₹1000 crore VC fund is a step forward, addressing the funding challenges faced by these nascent ventures in this capital-intensive domain.”

He also expressed hope that the proposed 12 industrial parks across India would include the space sector, providing a substantial boost to space and satellite manufacturing.

Anil Prakash, Director General of the Satcom Industry Association (SIA-India), echoed these sentiments, highlighting the potential economic benefits. “The ₹1000 crore venture capital fund for the space sector is a commendable initiative that will significantly foster innovation and growth within this critical industry. The expansion of India’s space economy is set to impact various sectors, from satellite-based services in agriculture and disaster management to advanced communication systems and space exploration missions.”

Dr. Pawan Goenka, Chairman of the Indian National Space Promotion and Authorization Centre (IN-SPACe), emphasized the importance of the fund for new entrepreneurs and non-governmental entities (NGEs) in the space sector. “The announcement of a focused venture fund of ₹1000 crore will give a major boost to new entrepreneurs and NGEs in the space sector. The fund, along with existing policies, will fuel technological innovation and create a fertile ground for NGEs to thrive.”

Srinath Ravichandran, Co-Founder and CEO of Agnikul Cosmos, expressed optimism about the government’s continued support. “Wonderful news for all of us in the sector. This will help larger players emerge out of India’s space startup ecosystem. This also shows that the Government is continuing to strongly back its vision of making India have a larger chunk of the global space economy.”

The budget’s focus on the space sector is expected to drive significant advancements, with the private sector playing a crucial role. The establishment of the venture capital fund is seen as a pivotal step in addressing the financial challenges faced by space startups and fostering an environment conducive to innovation and growth.

Agencies

Agencies