BREAKING| Sitharaman Announces Rs 1000 Crore Fund To Push 5X Growth In Space Economy

New Delhi: Union Finance Minister Nirmala Sitharaman announced the establishment of a ₹1,000 crore venture capital fund during the presentation of the Union Budget 2024. This initiative aims to grow the space sector fivefold over the next decade.

"To expand the space economy by five times in the next 10 years, a venture capital fund of ₹1,000 crore will be set up," said Sitharaman, emphasizing the government's commitment to fostering growth and innovation in this critical sector.

The announcement comes as more than 300 Indian entities have submitted 440 applications to the Indian National Space Promotion and Authorisation Centre (IN-SPACe) for assistance as of January 2024. These applications, as highlighted in the Economic Survey 2023-24 released on July 22, 2024, seek authorisation, handholding, facility support, consultancy, technology transfer, and facility usage in the space sector.

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IN-SPACe, an autonomous agency under the Department of Space (DOS), was established following the space sector reforms of 2020 to enable and facilitate the participation of private players. As of January 1, 2024, various non-governmental entities have signed 51 memoranda of understanding (MoUs) and 34 joint project implementation plans with IN-SPACe to assist in carrying out space activities.

The Economic Survey also highlighted the achievements of several private sector entities that have developed satellites and functional payloads for space operations. Notable companies include PixxelSpace, Digantara, Dhruva Space, Azista BST Aerospace, and Tata Advanced Systems Limited.

In 2022, Hyderabad-based Skyroot Aerospace Pvt Ltd became the first Indian private player to launch its rocket, Vikram-S, a suborbital launch vehicle. In 2024, Chennai-based Agnikul Cosmos Pvt Ltd made headlines by launching the world’s first rocket with a fully 3D-printed engine from the country’s first private launch pad, 'Dhanush,' established in Sriharikota.

The public sector also plays a significant role in India's space endeavors. Hindustan Aeronautics Ltd, in collaboration with Larsen & Toubro, has been selected as the Indian industry partner for the end-to-end production of five Polar Satellite Launch Vehicles (PSLVs). The PSLV, often referred to as the 'Workhorse of the Indian Space Research Organisation (ISRO),' has consistently delivered various satellites to low Earth orbits, with ISRO launching 60 PSLVs to date.

Moreover, the Economic Survey notes the initiation of small satellite launch vehicle technology, marking another step forward in India's burgeoning space sector.

The Union Budget 2024's focus on the space economy reflects the government's strategic vision to position India as a global leader in space technology and innovation. With increased funding and support, India's space sector is poised for unprecedented growth, driving economic development and technological advancement.