TLDR:
Key Points:
- Finance Minister announces a Venture Capital Fund of ₹1000 crore for the Space Sector
- Space Startups in India expected to boost the space economy five-fold in the next decade
In the Union Budget 24-25, the Finance Minister unveiled a Venture Capital Fund of ₹1000 crore for the Space Sector in India, aiming to support the growing number of Space Startups in the country. The fund is expected to elevate the space economy five times its current state over the next decade. This initiative comes after an increase of ₹500 crore in the budget allocated to the Indian Space Sector earlier this year.
The establishment of the VC Fund addresses a funding gap in nascent space R&D and is projected to foster local IP creation, drive innovation, and build sovereign capabilities. The fund is anticipated to enable startups to attract talent, establish local facilities, and explore export potential. Additionally, the fund will accelerate the adoption of space technologies and help in developing indigenous technology and solutions.
Furthermore, the budget focuses on sustaining current activities in the space sector by extending tax incentives for space startups and investments. The removal of Angel Tax aims to eliminate negative effects on foreign investments, making it more attractive for foreign investors to support startups in the long run. The emphasis on digital mapping in areas like land records and housing will create opportunities for downstream companies to leverage space technology.
Overall, the increased funding in the union budget has given a significant boost to India’s Space Sector, with growing support for startups by the Government. With sustained support, India’s Space sector is poised to contribute to the nation’s economic growth and promote the development of indigenous technology.
