Budget 2024: Space economy will run at the speed of a rocket, know what the space mission got in the budget

New Delhi: The government will create a Rs 1,000 crore venture capital (VC) fund to grow the space sector five times in the next 10 years. This will help make India self-reliant in the space sector. This fund will promote research, innovation and development in the field of space technology in the private sector. This is part of a larger fund of Rs 1 lakh crore created to encourage private sector innovation in different industries. Apart from this, companies working in space technology will be given space in 12 industrial parks approved under the National Industrial Corridor Development Program.‘Investment in space sector will increase 100 times’
Vishesh Rajaram, Founder and Managing Partner, Special Invest, said, “Over the next 10 years, India’s space market is projected to grow to $44 billion and we may see a 100-fold increase in investments across various sectors – launch vehicles, satellite manufacturing, Earth observation, communications and in-orbit economy.”

Space industry experts welcomed the budget
Space industry representatives welcomed the proposal. Lieutenant General AK Bhatt, Director General of the Indian Space Association (ISpA), said, “The budget vision to grow India’s space economy five-fold in the next decade reflects the government’s strong commitment to the sector.” he/she said these measures are essential for the development and growth of India’s space ecosystem.

‘Space ecosystem will get a boost’
Bengaluru-based Digantara, which maps space and has raised funding from firms such as Peak XV Partners and SIDBI, said it is important for a strategic sector like space to have more domestic customers, and for the government to act as the primary customer, which drives demand and fosters a strong ecosystem. “The state should invest in research, capacity development and high-risk areas,” said founder and CEO Anirudh Kulkarni.

‘Innovation and growth will increase’
Anil Prakash, Director General, Satcom Industry Association (SIA-India) said, “The VC Fund is a laudable initiative that will promote innovation and growth within this vital industry. Every rupee invested promises substantial returns, as the space sector has immense potential to contribute to GDP growth.”

The announcement is expected to benefit over 180 government-recognised space tech startups in India. It underlines the government’s efforts to establish India as a major player in the global commercial space market.