India will establish a 10 billion rupee ($119 million) venture capital fund to grow its space sector, Finance Minister Nirmala Sitharaman announced on Tuesday, as the country seeks a larger portion of the global space market.
Earlier this year, Prime Minister Narendra Modi’s government authorized 100% foreign direct investment in the production of satellite systems without official clearance and relaxed launch vehicle regulations.
“With our continued emphasis on expanding the space economy by five times in the next ten years, a venture capital fund of’1,000 crore (10 billion rupees) will be set up,” Sitharaman said in her budget statement in parliament.
India has privatized space launches and plans to raise its share of the global launch industry fivefold by 2032, which some estimate will be worth $47.3 billion. India presently accounts for approximately 2% of the space economy.
Private space corporations applauded the fund’s creation, claiming it will spur further investment in the industry.
“The announcement of a ₹1,000 crore VC fund is a step forward, addressing funding challenges faced by these nascent ventures in this capital-intensive domain,” A.K. Bhatt, director general of the Indian Space Association, said in a statement.
