Nirmala Sitharaman announces Rs 1,000-crore VC fund in a boost for space economy

Finance Minister Nirmala Sitharaman on July 23 announced that the government will set up a venture capital fund of Rs 1,000-crore for the space sector.

"With our continued emphasis on expanding the space economy by 5 times in the next 10 years, a venture capital fund of Rs 1,000 crore will be set up," Sitharaman said while presenting the Budget for the financial year 2024-25.

This announcement gains significance in the light of the Indian Space Research Organisation (ISRO's) recent achievements, including successfully landing Chandrayaan-3 near the Moon's South Pole, and space tech startup Agnikul Cosmos' successful launching of its maiden rocket.

Other space tech startups such as Pixxel, Digantara and Piersight Space have also attracted VC investments, signalling a growing demand for homegrown space tech solutions.

On July 22, the Economic Survey hailed India's burgeoning space sector growth while acknowledging challenges such as gaps in indigenous technology development and uncertain long-term demand.

Credit - Money Control