TLDR:
- A Rs 1,000 crore Venture Capital (VC) fund has been proposed in the Union Budget 2024 for space startups.
- The fund aims to grow India’s space economy from $8.4 billion to $44 billion by 2033.
Space startups in India have welcomed the Union Budget proposal for a Rs 1,000 crore VC fund, which is seen as a significant step towards expanding India’s space economy. The government estimates that India’s space economy will grow to $44 billion by 2033, and the VC fund is expected to support a new generation of space innovators and entrepreneurs. The announcement has been described as groundbreaking by Awais Ahmed, the founder and CEO of Bengaluru-based space data company Pixxel. Srinath Ravichandran, co-founder and CEO of Agnikul Cosmos, also highlighted the importance of the fund in helping larger players emerge from India’s space startup ecosystem. Pawan Kumar Chandana, co-founder and CEO of Skyroot Aerospace, emphasized the need to strategically invest in established capabilities and new technologies to capture a significant market share of the global space economy.
Vishesh Rajaram, Managing Partner of deep-tech VC firm Speciale Invest, believes that the fund, along with the government’s FDI policy, will attract more investment in the sector. However, Anirudh Sharma, CEO of Digantara, stressed the importance of a strategic approach with diverse investments to ensure the growth of the sector. Apurwa Masook, CEO of SpaceFields, welcomed the fund along with the abolition of the Angel Tax but raised concerns about the operationalization of the Rs 1 lakh crore corpus for R&D and innovation in sunrise sectors. Overall, the proposal marks a promising beginning for India’s space economy, with the potential to drive significant growth in the coming years.
