India approves $119 million fund to boost space startups

The Indian government has approved a Rs 1,000 crore fund to support the country's rapidly growing space sector, aiming to strengthen its share of the global commercial space market by 2033. The initiative, which is expected to benefit around 40 startups, underscores India's ambition to expand its presence in the global space industry.

The new fund, first proposed in July, will be managed by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), the nation’s space regulatory body. The financial assistance will range between Rs 10 crore and Rs 60 crore per startup, depending on their stage of development. The objective is to stimulate growth by generating employment, enhancing space technology, fortifying supply chains, and supporting research and development.

The government’s statement highlighted that "capital infusion (will) create a multiplier effect by attracting additional funding for later-stage developments," positioning India as a growing force in the international space market.

India’s Growing Space Ambitions

Despite being one of the top five space-faring nations, India currently holds only 2 per cent of the global commercial space market. The government, under Prime Minister Narendra Modi ’s leadership, aims to increase this share fivefold, reaching $44 billion by 2033. To achieve this, India has been opening up its space sector to private investment, fostering a competitive environment for innovation.

India's space startup ecosystem has grown substantially, with close to 250 startups focused on providing cost-effective services and hardware across various sectors, including communications, agriculture, and commodities. Some are also working on the country’s first private rockets. The initiative comes as private equity investments in India’s space sector reached $126 million in 2023, a 7 per cent increase from the previous year and a significant jump from $37.6 million in 2021, according to Tracxn data.

(With Reuters inputs.)