The finance minister's proposal says to global investors that India is serious about private investment in the sector for the long haul
Agnibaan Suborbital Technological Demonstrator (SOrTeD) rocket of Chennai-based Agnikul Cosmos sits on the launch pad at Satish Dhawan Space Centre, in Sriharikota. Image: PTI Photo
Finance Minister Nirmala Sitharaman proposed a Rs1,000 crore venture capital (VC) fund to support the country’s space tech startups, a measure that comes on the heels of the government’s efforts in recent years to open the sector to global private investments.
“With our continued emphasis on expanding the space economy by five times in the next 10 years, a venture capital fund of Rs1,000 crore will be set up,” Sitharaman said in her Budget speech on July 23.
Beyond the quantum of the fund itself, this move at the highest level sends a clear signal to global investors that the government is serious about opening India’s space industry to private investment, founders and venture capital investors say.
“It’s wonderful news for all of us in the sector. This will encourage more private player participation and help larger players emerge out of India’s space startup ecosystem,” Srinath Ravichandran, co-founder and CEO of Agnikul Cosmos, a space launch vehicle maker in Chennai, says.
“It is also a clear sign from the government that it is going to be following through with all the support and backing for opening up the space sector,” he adds.