TLDR:
- Finance minister Nirmala Sitharaman announced a Rs 1,000 crore venture capital fund for the space sector during the Budget presentation.
- The industry welcomed the move but also called for more tangible incentives to propel growth.
Finance minister Nirmala Sitharaman has unveiled a new initiative aimed at supporting the space sector in India. The Rs 1,000 crore venture capital fund is a significant step towards bolstering the growth of the sector, which is still in its early stages but showing signs of maturing. While the industry has welcomed this move, there are calls for more concrete incentives to be put in place to ensure widespread growth.
Companies in the space sector have expressed their appreciation for the venture capital fund, acknowledging the importance of expanding the space economy by five times in the next decade. However, there is a consensus that more could be done to provide additional support and incentives for the industry.
Gautam Sharma, MD of American satellite company Viasat, emphasized the strategic importance of the space sector for the country and highlighted the need for incentives such as import holidays, tax holidays, PLI schemes, low-interest financial loans, and lower GST rates to further boost growth.
Rahul Saxena, co-founder of AiDash, noted the rapid progress made in the Indian space sector with the involvement of private players and pointed out the challenges that remain in attracting private investment. He sees the government-supported VC fund as a crucial step towards industry growth and the realization of India’s ambition to increase the space economy fourfold by 2030.
Lieutenant General AK Bhatt (Retired), DG of Indian Space Association (ISpA), commended the government’s commitment to the sector through the creation of the VC fund. He stressed the importance of addressing funding challenges faced by space startups and called for industrial parks that include the space sector to provide a significant boost to satellite manufacturing.
