Union Cabinet Approves ₹1,000 Crore Venture Capital Fund for Space Sector

GG News Bureau
New Delhi, 24th Oct. The Union Cabinet on Thursday approved the establishment of a ₹1,000 crore Venture Capital Fund dedicated to the space sector under the aegis of the Indian National Space Promotion and Authorization Center (IN-SPACe). This fund is set to bolster innovation and growth within India’s burgeoning space economy.

Financial Overview:
The deployment of the proposed ₹1,000 crore fund is planned over five years, with an average annual deployment of ₹150-250 crore based on investment opportunities. The estimated financial breakdown is as follows:

• 2025-26: ₹150 crore
• 2026-27: ₹250 crore
• 2027-28: ₹250 crore
• 2028-29: ₹250 crore
• 2029-30: ₹100 crore

The fund is expected to support around 40 startups, with an indicative investment range of ₹10-60 crore depending on the company’s growth stage and potential impact on national space capabilities.

Strategic Goals:
This fund aims to strategically advance India’s space sector by:

• Infusing capital to attract further funding
• Retaining Indian space companies domestically
• Accelerating the development of space technology
• Boosting global competitiveness and supporting the Atmanirbhar Bharat initiative
• Creating a vibrant innovation ecosystem

Employment Impact:
The proposed fund is anticipated to create substantial employment opportunities within the Indian space sector. By supporting startups across the entire supply chain, from upstream to downstream, the fund aims to scale operations, enhance research and development, and expand the workforce. Each investment could lead to hundreds of direct jobs in areas like engineering, software development, and manufacturing, alongside thousands of indirect jobs in logistics and professional services.

Background:

As part of its 2020 space sector reforms, the Government of India established IN-SPACe to promote private sector participation in space activities. The new fund is designed to address the critical need for risk capital in a sector that has seen nearly 250 startups emerge across the value chain. By providing timely financial support, the government aims to bolster investor confidence, attract private capital, and signal its commitment to advancing space reforms in India.