The Indian government has approved a 10 billion Indian rupee ($119 million) fund to boost its burgeoning space sector. This initiative is set to benefit 40 startups as India aims to capture a significant share of the commercial space market by 2033.
The fund, announced on Thursday, will provide funding ranging from 100-600 million Indian rupees, depending on the maturity of each startup. It aims to generate employment, advance space technology development, strengthen supply chains, and support research and development. The government stated that this capital infusion would create a multiplier effect, attracting additional funding for later-stage developments.
The fund, first proposed in July, will be managed by the Indian National Space Promotion and Authorisation Centre, the country’s space regulator.
India is one of the top five space-faring nations globally but currently holds only about a two percent market share of the commercial space market. Prime Minister Narendra Modi’s government is pushing to change this, opening the industry to foreign investment and targeting a five-fold increase in market share to $44 billion by 2033.
India has nearly 250 space startups, many providing cost-effective services and hardware to sectors such as communications, agriculture, and commodities, where high-quality data is crucial. Others are developing the country’s first private rockets.
Private equity investment in India’s space industry has risen to $126 million in 2023, a seven percent increase from the $118 million raised in 2022 and a 235 percent increase from the $37.6 million raised in 2021, according to Tracxn data.
ALSO READ:
